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Compute the band yield to maturity

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Reference no: EM133135704

Question - Fingen's 13-year, $1,000 par value bonds pay 8 percent interest annually. The market price of the bonds is $1,070 and the market's required yield to maturity on a comparable-risk bond is 6 percent.

Required -

a. Compute the band'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: EM133135704

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