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ok quick update... problem was I put the % in the box. Harrimon Industries bonds have 6 years left to maturity. Interest is paid annually,

image text in transcribedimage text in transcribedok quick update... problem was I put the % in the box.

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 8%. a. What is the yield to maturity at a current market price of 1. $767? Round your answer to two decimal places. 13.99% % 2. $1,105? Round your answer to two decimal places. 5.87% % b. Would you pay $767 for each bond if you thought that a "fair" market interest rate for such bonds as 13%-that is, if rd = 13%? I. You would not buy the bond as long as the yield to maturity at this price is greater than your required rate of return. II. 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. III. You would buy the bond as long as the yield to maturity at this price is greater than your required rate of return. IV. You would buy the bond as long as the yield to maturity at this price is less than your required rate of return. V. You would buy the bond as long as the yield to maturity at this price equals your required rate of return. III 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 What is the yield to maturity at a current market price of $767? Round your answer to two decimal places. 1000 face bond price coupon nper 767 80 6 13.99% $1,105? Round your answer to two decimal places. 1000 face bond price 1105 80 coupon nper 6 5.87%

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