Harrimon Industries bonds have $5$ years left to maturity. Interest is paid annually, and the

bonds have a $$1,000$ par value and a coupon rate of $9\%.$

a$.$ What is the yield to maturity at a current market price of

$$808?$ Round your answer to two decimal places.

$\%$

$$1,097?$ Round your answer to two decimal places.

$\%$

b$.$ Would you pay $$808$ for each bond if you thought that a "fair" market interest rate for such

bonds was $14\%-$that is$,$ if $r_d=14\%?$

I. You would buy the bond as long as the yield to maturity at this price is greater than your

required rate of return.

II$.$ You would buy the bond as long as the yield to maturity at this price is less than your

required rate of return.

III. You would buy the bond as long as the yield to maturity at this price equals your required

rate of return.

IV$.$ You would not buy the bond as long as the yield to maturity at this price is greater than

your required rate of return.

V$.$ You would not buy the bond as long as the yield to maturity at this price is less than the

coupon rate on the bond.