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Compute the bond yield to maturity

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Question - The 18?-year, ?$1,000 par value bonds of Waco Industries pay 11 percent interest annually. The market price of the bond is ?$1,105?, and the?market's required yield to maturity on a? comparable-risk bond is 8 percent.

Required -

A. Compute the bond'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: EM133057569

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