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Bobs 16-year 1000 par value bonds pay 12 interest annually

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Reference no: EM13568305

Bob's 16-year, $1,000 par value bonds pay 12% interest annually. The market price of the bonds are $880 and the yield to maturity on a comparable risk bond is 15% (Show work)

a. Compute the bond's yield to maturity

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

c. Should you purchase the bond?

Reference no: EM13568305

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