The fieldstone flooring company series A bonds have 5 years to maturity. Interest rate is paid annuary; the bonds have a $1,000 par value; and the coupon rate is 9 %.
a) what is the yield to maturity, at a current market price of $829 ?
b) what us the yield to maturity at a market price of $1,104?
c) what would you pay for a bond if you believed that appropriate yeild is 12% ?