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%.

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

1. $833?

2. $1,137?

3.Would you pay $833 for each bond if you thought that a "fair" market interest rate for such bonds was 13%that is, if r_d = 13%?

-You would not buy the bond as long as the yield to maturity at this price is greater than your required rate of return.

-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.

-You would buy the bond as long as the yield to maturity at this price is greater than your required rate of return.

-You would buy the bond as long as the yield to maturity at this price is less than your required rate of return.

-You would buy the bond as long as the yield to maturity at this price equals your required rate of return.