What is the yield to maturity on the issue

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Question - Sacramento Health System has bonds outstanding that have five years remaining to maturity, a coupon interest rate of 9 percent paid annually, and a $1,000 par value.

1. What is the yield to maturity on the issue if the current market price is $829?

2. If the current market price is $1,104?

3. Would you be willing to buy one of these bonds for $829 if you required a 12 percent rate of return on the issue? Explain your answer.

4. Use Excel in presenting the answers for your work. Be sure to show calculations (using cell formulas is suggested).

Reference no: EM132174361

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