Bond of golden years recreation corp oration

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Question 1: Ron Rhodes calls his broker to inquire about purchasing a bond of Golden Years Recreation Corp oration. His broker quotes a price of $1.170. Ron is concerned that the bond might be overpriced based on the facts involved. The $ LDUU par value bond pays 13 percent interest= and it has 13 years remaining until maturity. The current yield to maturity on similar bonds is 11 percent. Do you think the hood is overpriced? Do the necessary calculations.

Reference no: EM133057622

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