Should the investor buy bond from broker at quoted price

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Reference no: EM131943050

An investor is intrested in purchasing a corporate bond. His broker quotes a price of 965. The 1000 $ per value bond pay 9% intrest, amd has 20 years remaining until maturity. The current yeild to maturity is 10% for similar bonds.

1. What is the present value of the bon

2. Should the investor buy the bond from the broker at the quoted price?

Reference no: EM131943050

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