Compute the bonds yield to maturity

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Reference no: EM131073211

The 14-year, $1,000 par value bonds of Waco Industries pay 12 percent interest annually. The market price of the bond is $1,115, and the market's required yield to maturity on a comparable-risk bond is 9 percent.

Compute the bond's yield to maturity.

Determine the value of the bond to you given the market's required yield to maturity on a comparable-risk bond.

Should you purchase the bond?

Reference no: EM131073211

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