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Compute the bond yield to maturity

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Reference no: EM132949754

Question - Fingen's 16-year, $1,000 par value bonds pay 14 percent interest annually. The market price of the bonds is $1,140 and the market's required yield to maturity on a comparable-risk bond is 10 percent.

Required -

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: EM132949754

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