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Bond valuation? relationships

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(Bond valuation? relationships)

The 13?-year, ?$1,000 par value bonds of Waco Industries pay 8 percent interest annually. The market price of the bond is ?$1,085?, and the? market's required yield to maturity on a? comparable-risk bond is 5 percent.

a. What is your yield to maturity on the Waco bonds given the current market price of the? bonds?

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: EM132141222

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