The Heymann Company's bonds have 4 years remaining to maturity. interest is paid annually; the bonds have a $1000 par value: and the coupon interest rate is 9%.
A. what is the yield to maturity at a current market price of $829 or $1104?
B. would you pay $829 for one of these bonds if you thought that the appropriate rate of interest was 12% - that is , if kd=12%? Explain your answer.