Bond valuation? relationships

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(Bond valuation? relationships)

The 16?-year, ?$1,000 par value bonds of Waco Industries pay 11 percent interest annually. The market price of the bond is? $905?, and the? market's required yield to maturity on a? comparable-risk bond is 14 percent.

Compute the? bond's yield to maturity.

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

Should you purchase the? bond?

Reference no: EM133111262

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