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Find the value of the bond given the market

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Reference no: EM132810051

The 18-year, $1,000 par value bonds of Waco Industries pay 9 percent interest annually. The market price of the bond is $1,125, and the market's required yield to maturity on a comparable-risk bond is 6 percent.

problem a. Compute the bond's yield to maturity. (Round to two decimal places)

problem b. Determine the value of the bond to you given the market's required yield to maturity on a comparable-risk bond. (Round to the nearest cent)

problem c. Should you purchase the bond?

Reference no: EM132810051

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