Heymann Company 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 10%. What is the yield to maturity at a current market price of $863?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
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Heymann Company 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 10%.
What is the yield to maturity at a current market price of
$863?
Transcribed Image Text:Heymann Company 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 10%. What is the yield to maturity at a current market price of $863?
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