we have to find the YTM for whci we have to use finance calculator with following variables
if current Market price is $831
NPER =4
PMT =90
FV =1000
PV =831
Therefor YTM =14.91%
if current Market price is $1073
NPER =4
PMT =90
FV =1000
PV =1073
Therefor YTM =6.85%
Yes would buy the bond as long as the yield to maturity at this price is greater than your required rate of return
eBook Harrimon Industries bonds have 4 years left to maturity. Interest is paid annually, and the...
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