What is the yield to maturity at a current market price 1


Harmon Industries bonds have 6 years left to maturity. Interest is paid annually, and the bonds have a $1000 par value and a coupon rate of 10%. What is the yield to maturity at a current market price (1) $865 and (2) $1,166? B) Would you pay $865 for each bond if you thought that was a "fair" market interest rate for such bonds was 12%--that is rd (small "d")= 12%. Explain your answer

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Financial Management: What is the yield to maturity at a current market price 1
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