Harrimon Industries 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 10%.a. What is the yield to maturity at a current market price of1. $905? Round your answer to two decimal places. Answer: 13.11% (Incorrect)2. $1,148? Round your answer to two decimal places. Answer: 5.78% (Correct)

MATURITY YEARS LEFT=4 YEARS PAR VALUE OF BOND=$1000 COUPON RATE=10% YTM=? CURRENT MARKET PRICE OF…

Answered: What is the yield to maturity at a…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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am. 122.
which time it can be called at 108 - that is, at 108% of par, or $1,080. Interest rates have declined since it was issued, and it is now selling at 120.08% of par, or $ 1,200.80. a. What is the yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places. % What is the yield to call? Do not round intermediate calculations. Round your answer to two decimal places. %
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What is the yield to maturity at a current market price of 1. $905? Round your answer to two decimal places. 13.11 % 2. $1,148? Round your answer to two decimal places.