Why should the investor purchase the bond

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Reference no: EM132005278

Question: How much would ana investor be willing to pay for a $1000, 10 percent coupon bond, with 23 years to maturity if the investor requires a 9 percent return, and the bond pays interest semi-annually?

a.) if the bond i sselling for $1150, what is the bond's yield to maturity?

b) should the investor purchase the bond? why?

c) if the bond is callable in 8 years at $1200, what is the bond's yield to call?

Reference no: EM132005278

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