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Harrimon Industries bonds have 4 years left to maturity. Interest is paid annually, and the bonds...

Harrimon Industries bonds have 4 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 9%.
What is the yield to maturity at a current market price of

$872? Round your answer to two decimal places.
%

$1,116? Round your answer to two decimal places.
%
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Answer #1
Par value of bonds 1000
Annual interest 90
Annuity PVF for 4yrs at 13.33% 2.95419
PVF for 4yrs at 13.33% 0.606206
Present value of Interest 265.8771
Present value of Maturity value 606.206
Price 872.0831
YTM is 13.33%
Par value of bonds 1000
Annual interest 90
Annuity PVF for 4yrs at 5.67% 3.49145
PVF for 4yrs at 5.67% 0.802035
Present value of Interest 314.2305
Present value of Maturity value 802.035
Price 1116.266
YTM is 5.67%
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