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Compute the bond yield to maturity

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Fingen's 19 year $1000 par value bonds pay 8 percent interest annually. The market price of the bonds is $1,120 and the market's required yield to maturity on a comparable- risk bond is 5 percent.

a. Compute the bond's yield to maturity.

b. Determine the value of the bond to you, given your required rate of return.

c. Should you purchase the bond?

Reference no: EM132807168

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