Yield To maturity
Heymann Company bonds have 4 years left to maturity. Interest is paid annually, and the bonds have a 1000 par value and a coupon rate of 9%.
A) What is the yield to maturity at a current market price of (1) $829 and (2) $ $1104?
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.
Please answer in excell format.