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Compute the bond yield to maturity

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Reference no: EM132815383

Question - Fingen's 18-year, $1,000 par value bonds pay 11 percent interest annually. The market price of the bonds is $1,060 and the market's required yield to maturity on a comparable-risk bond is 9 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?

d. What is your yield to maturity on the Fingen bonds given the market price of the bonds?

Reference no: EM132815383

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