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Hello can you provide assistance with the problems below ? 1. Fingen's 16​-year, $1,000 par value...

Hello can you provide assistance with the problems below ?

1. Fingen's 16​-year, $1,000 par value bonds pay 14 percent interest annually. The market price of the bonds is $1,150 and the​ market's required yield to maturity on a​ comparable-risk bond is 13 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?

2. A bond that matures in 18 years has a ​$1,000 par value. The annual coupon interest rate is 11 percent and the​ market's required yield to maturity on a​ comparable-risk bond is16 percent.

What would be the value of this bond if it paid interest​ annually?

What would be the value of this bond if it paid interest​ semiannually?


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