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Bonomo Corporations bonds have 4 years remaining to maturity. Interest is paid annually in arrears. The bonds have a par value of $1,000, and a
- Bonomo Corporations bonds have 4 years remaining to maturity. Interest is paid annually in arrears. The bonds have a par value of $1,000, and a coupon interest rate of 4.5%. (a) What is the bonds yield-to-maturity at a current price of $916? (b) What is the bonds yield-to-maturity at a current price of $1022? (c) Would you pay $916 for one of Bonomos bonds if you thought that the appropriate rate of interest (i.e., your expected rate of return) was 6%? (d) Why, or why not?
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