Determine the value of the bond to you

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Question - Fingen's 16-year, $1,000 par value bonds pay 8 percent interest annually. The market price of the bonds is $1,080 and the market's required yield to maturity on a comparable-risk bond is 9 percent.

Required -

Compute the bond's yield to maturity.

Determine the value of the bond to you, given your required rate of return.

Should you purchase the bond?

Reference no: EM132789883

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