Question

Fingen's 15 year, ​$1000 par value bonds pay 11 percent interest annually. The market price of...

Fingen's 15 year, ​$1000 par value bonds pay 11 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 14 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?

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Answer #1

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