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A 1 4 - year, $ 1 , 0 0 0 par value Fingen bond pays 6 % interest annually ( assume semiannual payments )

A 14-year, $1,000 par value Fingen bond pays 6% interest annually (assume semiannual payments). The price of the bond is $1,100 and the market's required yield to maturity on a comparable-risk bond is 5.50%.
a. Compute the bonds yield to maturity.
b. Determine the value of the bond to you, given your required rate of return (the YTM on a comparable-risk bond).
c. Should you purchase the bond?
\table[[Coupon rate,6.0%,],[Par (FV),$1,000,],[Years (n),14,],[m,2,],[PMT,$30,Calculation],[PV (price),$1,100,],[YTM,,]]
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