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Determine the value of the bond and should purchase bond

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Reference no: EM132770140

The 19?-year, ?$1,000 par value bonds of Waco Industries pay 6 percent interest annually. The market price of the bond is ?$905?, and the? market's required yield to maturity on a? comparable-risk bond is 8 percent.

Problem 1: Compute the? bond's yield to maturity.

Problem 2: Determine the value of the bond to you given the? market's required yield to maturity on a? comparable-risk bond.

Problem 3: Should you purchase the? bond?

Problem 4: What is your yield to maturity on the Waco bonds given the current market price of the? bonds?

Reference no: EM132770140

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