need answer in step by step Harrimon Industries bonds have 4 years left to maturity. Interest is paid äññüally, and thea. What is the yield to maturity at a current market price of1. $879? Round your answer to two decimal places.%2. $1,162? Round your answer to two decimal places.%b. Would you pay $879 for each bond if you thought that a "fair" market interest rate for such bonds was 13%-that is, if rd = 13%?I. You would buy the bond as long as the yield to maturity at this price equals your required rate of return.II. You would not buy the bond as long as the yield to maturity at this price is greater than your required rate of return.III. You would not buy the bond as long as the yield to maturity at this price is less than the coupon rate on the bond.IV. You would buy the bond as long as the yield to maturity at this price is greater than your required rate of return.V. You would buy the bond as long as the yield to maturity at this price is less than your required rate of return.-Select- 9

a 1) YTM=15%a 2) YTM=7% b)You would buy the bond as long as the yield to maturity at this price…

Answered: Harrimon Industries bonds have 4 years…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 9P

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