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Acme, Inc. issues 35 year, par value $1,000 bonds that has a coupon rate of 10% annually. The market price for the bonds is $950.
Acme, Inc. issues 35 year, par value $1,000 bonds that has a coupon rate of 10% annually. The market price for the bonds is $950. The market's required yield to maturity on a comparable risk bond is 15% a. What is the bond's yield to maturity? b. What is the value of the bond to you? b. What happens to the value if the market's required yield to maturity on a comparible risk bond increases to 18% or decreases to 9%. a. b. c
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