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Compute the bond yield to maturity

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Reference no: EM131775293

Question - Bond valuation

Fingen's 17-year, $1,000 par value bonds pay 9 percent interest annually. The market price of the bonds is $900 and the market's required yield to maturity on acomparable-risk bond is 12 percent.

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: EM131775293

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