Question
8.Abner Corporation's bonds mature in 19 years and pay 9 percent interest annually. If you purchase the bonds for $800, what is your yield to
8.Abner Corporation's bonds mature in 19 years and pay 9 percent interest annually. If you purchase the bonds for $800, what is your yield to maturity. Round two places
9.The 11 year $1,000 par bonds of Vail Inc pay 11 percent interest. The market's required yield to maturity on a comparable -risk bond is 15 percent. The current market price for the bond is $880. (a) determine the yield to maturity, (b) What is the value of the bonds to you given the yield to maturity on a comparable-risk bond? c) Should you purchase the bond at current market price?
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