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A 12 year, $1000 par value bonds pay 9 percent interest annually. The market price of the bonds is $1050 and the markets required yield

A 12 year, $1000 par value bonds pay 9 percent interest annually. The market price of the bonds is $1050 and the markets required yield to maturity on a comparabke risk bond is 10 precent.

a) compute the bonds yield to maturity.

b) determine the value of the bond to you, given your required rate of return

c) should you purchased a bond?

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