Question
Harrimon Industries bonds have 4 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon
Harrimon Industries bonds have 4 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. $898? Round your answer to two decimal places. % 2. $1,159? Round your answer to two decimal places. % b. Would you pay $898 for each bond if you thought that a "fair" market interest rate for such bonds was 12%-that is, if ra - 12% ?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
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