Bond valuation? relationships

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(Bond valuation? relationships)

The 17?-year, ?$1,000 par value bonds of Waco Industries pay 8 percent interest annually.  The market price of the bond is ?$1,105?, and the? market's required yield to maturity on a? comparable-risk bond is 5 percent. Round to nearest cent or 2 decimal places.

a. Compute the? bond's yield to maturity.

b. Determine the value of the bond to you given the? market's required yield to maturity on a? comparable-risk bond.

c. Should you purchase the? bond?

Reference no: EM131790444

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