What is the yield to maturity at current market price

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Reference no: EM131553700

The Aqua Man, LLC has bonds with 4 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 9%.

a) What is the yield to maturity at a current market price of $829 and $1,104?

b) Would you pay $829 for one of these bonds if your required return was 12%? Explain

Reference no: EM131553700

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