problem: Heymann company bonds have four years left to maturity. Interest is paid annually, and the bonds have a $1000 par value and a coupon rate of 9 percent.
[A] Determine the yield to maturity at a current market price of [a] $829 or [b] $1104?
[B] Would you pay 829 dollar for each bond if you thought that a "fair" market interest price for such bonds was 12%- that is if r=12%? Show all work to receive full credit.