In: Finance
YIELD TO MATURITY
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 8%.
1. 14.52%
2. 6.09%
b. I. You would buy the bond as long as the yield to maturity at this price is greater than your required rate of return.
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