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S. Problem 7.09 (Yield to Maturity) eBook Harrimon Industries bonds have 5 years left to maturity. Interest is paid annually, and the bonds have a

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S. Problem 7.09 (Yield to Maturity) eBook 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. $8147 Round your answer to two decimal places. 2. $1,1707 Round your answer to two decimal places b. Would you pay $814 for each bond if you thought that a "ale market interest rate for such bonds was 13%-that is, ir - 1347 1. You would buy the bond as long as the yield to maturity at this price equals your required rate of return 11. You would not buy the bond as long as the yield to maturity at this price is greater than your required rate of retum. IIT. You would not buy the bond as long as the yield to maturity at this price is less than the coupon rate on the band. IV. You would buy the bond as long as the yield to maturity at this price is greater than your required rate of return. V. You would buy the bond as long as the yield to maturity at this price is less than your required rate of return Select Grade It Now Save & Continue

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