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Assignment on bond valuation

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Reference no: EM133056659

(Bond valuation)

a. Compute the? bond's yield to maturity. ?Fingen's 18?-year, ?$1,000 par value bonds pay 13 percent interest annually. The market price of the bonds is $880 and the? market's required yield to maturity on a? comparable-risk bond is 16 percent.

b. Determine the value of the bond to? you, given your required rate of return.

c. Should you purchase the? bond?

Solve for a, b, and c.

Reference no: EM133056659

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