Determine the value of the bond

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Reference no: EM133253166

The 12?-year, $1,000 par value bonds of Waco Industries pay 11 percent interest annually. The market price of the bond is $855?, and the? market's required yield to maturity on a? comparable-risk bond is 15 percent.

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: EM133253166

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