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Computing the required rate of return

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Reference no: EM132092652

Fingen's 17-year, $1000 par value bonds pay 9 percent interest annually. The market price of the bonds is $920 and the market's required yield to maturity on a comparable-risk bond is 12 percent. How would you compute the bond's yield to maturity? How would you determine the value of the bond to you, given your required rate of return? Finally, should you purchase the bond?

Reference no: EM132092652

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