Question
Heymann Company bonds have 4 years left to maturity. Interest is paid annually, and the bonds have a $1000 par value and a coupon rate
Heymann Company bonds have 4 years left to maturity. Interest is paid annually, and the bonds have a $1000 par value and a coupon rate of 9%.
question 1: What is the yield to maturity at a current market price of $829? (provide the number before the unit of %, accurate to two decimal place.)
question 2: What is the yield to maturity at a current market price of $1104? (provide the number before the unit of %, accurate to two decimal place.)
question 3: Would you pay $829 for each bond if you thought that a fair market interest rate for such bonds was 16%? (fill in the third blank with yes or no)
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