Sub: Finance Topic: Bond Valuation
Computation of yield to maturity of Bond.
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Yield to maturity:
1. Heymann Company 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 9%.
a. What is the yield to maturity at a current market price of $829? Round the answer to the
nearest hundredth. ____%
b. What is the yield to maturity at