Market requiered yield to maturity on comparable risk bond

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Bond valuation relationships the 15 year, $1,00o par value bonds of Waco industries pay 6% interest annually. the market price of the bond is $855, and the market's required yield to maturity on a comparable risk bond is 9%.

a. what is your yield to maturity on the Waco bonds given the current market price of the bonds?______%

b. Determine the value of the bond to you given the market's requiered yield to maturity on a comparable risk bond?

c. should you purchase the bond?

Reference no: EM131052289

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