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 9%.

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

$788? Round your answer to two decimal places.

%

$1,164? Round your answer to two decimal places.

%

B. Would you pay $788 for each bond if you thought that a "fair" market interest rate for such bonds was 14%that is, if rd = 14%?

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

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

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

4-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.

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