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Compute the bands yield to maturity

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Reference no: EM132847659

Problem - The 11-year, $1,000 par value bonds of Waco Industries pay 7 percent interest annually. The market price of the bond is $1,075, and the market's required yield to maturity on a comparable-risk bond is 8 percent.

Required -

a. Compute the band'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: EM132847659

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