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Homework answers / question archive / Fingen's 11?-year, ?$1,000 par value bonds pay 11 percent interest annually

Fingen's 11?-year, ?$1,000 par value bonds pay 11 percent interest annually

Finance

Fingen's 11?-year, ?$1,000 par value bonds pay 11 percent interest annually. The market price of the bonds is ?$950 and the? market's required yield to maturity on a? comparable-risk bond is 13 percent.

 

a.  Compute the? bond's yield to maturity. (%, Round to two decimal places)

b.  Determine the value of the bond to? you, given your required rate of return. ($, Round to two decimal places, EX 102.25)

c.  Should you purchase the? bond?

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