Heymann firm bonds havefour 4 years left to maturity., Ask an Expert

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problem: Heymann firm bonds havefour (4) years left to maturity. Interest is paid yearly, and the bonds have a $1,000 par value and a coupon rate of 9%.

[A] find out the yield to maturity at a current market price of (a) $829 or (b) $1,104?

[B] Would you pay $829 for every bond if you thought that a “fair” market interest rate for such bonds was 12%-that is, if r d=12%? describe your reasoning.

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Category:- Basic Finance
Reference No.:- M921386

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