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(Bond valuation) Fingen's 166-year, $1,000 par value bonds pay 11 percent interest annually. The market price of the bonds is $860 and themarket's required yield
(Bond valuation)Fingen's 166-year, $1,000 par value bonds pay 11 percent interest annually. The market price of the bonds is $860 and themarket's required yield to maturity on acomparable-risk bond is 15 percent.
a.Compute thebond's yield to maturity.
b.Determine the value of the bond toyou, given your required rate of return.
c.Should you purchase thebond?
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