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Determine the value of the bond

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Reference no: EM132464099

Problem - The 11 year, $1000 par value bonds of Waco Industries pay 9% interest annually. The market price of the bond is $955, and the market's required yield to maturity on a comparable-risk bond is 11%.

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: EM132464099

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