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A 11 year $1000 par value bond of corporation pay 12 percent interest annually. The market price of the bond is $1,095 and the market
A 11 year $1000 par value bond of corporation pay 12 percent interest annually. The market price of the bond is $1,095 and the market to require yield to maturity on a comparable respond, is 9 percent.a) compute the bonds yield to maturity b) determine the value of the bond to you given the markets required yield to maturity on a comparable risk bond c) should you purchase the bond?
a) compute the bonds yield to maturity
b) determine the value of the bond to you given the markets required yield to maturity on a comparable risk bond
c) should you purchase the bond?
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