Determine the value of the bond

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Reference no: EM132420768

Problem: The 18?-year, ?$1,000 par value bonds of Waco Industries pay 12% interest annually. The market price of the bond is ?$915?, and the?market's required yield to maturity on a? comparable-risk bond is 15 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: EM132420768

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