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9 YIELD TO MATURITY Harrimon Industries bonds have 6 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value
9 YIELD TO MATURITY Harrimon Industries bonds have 6 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 10%. a. What is the yield to maturity at a current market price of (1) $865 and (2) $1,166? b. Would you pay $865 for each bond if you thought that a "fair" market interest rate for such bonds was 12%-that is, if ra = 12%? Explain your
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Financial Intelligence For IT Professionals
Authors: Julie Bonner
1st Edition
103215294X, 9781032152943
