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# 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...

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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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...

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