What is the yeild to maturity at a current market price

Reference no: EM13305921

A company bonds have 4 years left to maturity. interestis pain annually and the bonds have a $1000 par value and a couponrate of 9%.

a) what is the yeild to maturity at a current market price of (1) 829 and (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% that is if rd=12% Explain your answer?

Reference no: EM13305921

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