Compute the yield to maturity for the bonds

Reference no: EM131394060

Severn Company's bond has four years remaining to maturity. Interest is paid semiannually, the bonds have a $1,000 par value, and the coupon interest rate is 9 percent. Compute the yield to maturity for the bonds if the current market price is

(a) $851 and

(b) $1,105.

Reference no: EM131394060

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