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Calculating the current market price

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Reference no: EM13826696

Problem:

Minneapolis Health System has bonds outstanding that have four years remaining to maturity, a coupon interest rate of 9% paid annually and a $1000 par value. 

a. What is the yield to maturity on the issue if the current market price is $829?

b. If the current market price is $1104?

c. Would you be willing to buy one of those bonds for $829 if you required a 12% rate of return on the issue? Explain you answer.

Additional Information:

This question is basically belongs to Finance as well as it explains about calculating the current market price for an outstanding bond with 4 years to maturity.

Reference no: EM13826696

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