(Answered) Question - yield to maturity heyman company bonds have 4

Accounting

Question - Yield to maturity Heyman Company bonds have 4 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 9 percent.

a. What is the yield to maturity at a current market price of (1) $829 or (2) $1,104?

b. Would you pay $829 for each bond if you thought that a "fair" market interest rate for such bonds was 12 percent--that is, if rd=12 percent? Explain your answer.

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