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(Bond valuation)Fingen's 11-year, $1000 par value bonds pay 12 percent interest annually. The market price of the bonds is $870 and the market's required yield

(Bond valuation)Fingen's 11-year, $1000 par value bonds pay 12 percent interest annually. The market price of the bonds is $870 and the market's required yield to maturity on a comparable-risk bond is 13 percent.

a.Compute the bond's yield to maturity.

b.Determine the value of the bond to you, given your required rate of return.

c.Should you purchase the bond?

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