Pharoah Corp. has 18-year bonds outstanding. These bonds, which pay interest semiannually, have a coupon rate of 9.635 percent and a yield to maturity of 9.0 percent. Assume face value is $1,000. Problem 8.30(a) Your answer is correct. Compute the current price of these bonds. (Round answer to 2 decimal places, e.g. 15.25.) Current price $ eTextbook and Medial Problem 8.30(b) Your answer is correct. 1,056.09 Attempts: unlimited If the bonds can be called in five years at a premium of 11.0 percent over par value, what is the investor's realized yield? (Round answer to 3 decimal places, eg. 15.255%)

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Harrimon Industries bonds have 5 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 9%. a. What is the yield to maturity at a current market price of 1. $8257 Round your answer to two decimal places. % 2. $1,142? Round your answer to two decimal places. b. Would you pay $825 for each bond if you thought that a "fair" market interest rate for such bonds was 13%-that is, if rd = 13%? 1. 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…

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