Question: a. Calculator solution: 1. Input N = 5, PV = -829, PMT = 90, FV = 1000, I/YR = ? I/YR = 13.98%. 2. Change

a. Calculator solution: 1. Input N = 5, PV = -829, PMT = 90, FV = 1000, I/YR = ? I/YR = 13.98%. 2. Change PV = -1104, I/YR = ? I/YR = 6.50%. b. Yes. At a price of $829, the yield to maturity, 13.98 percent, is greater than your required rate of return of 12 percent. If your required rate of return were 12 percent, you should be willing to buy the bond at any price below $891.86

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