Chad is considering buying corporate bonds that were issued five years ago. The bonds have 8 percent coupon (interest is paid semi-annually), $1,000 par value, and an original maturity of 25 years. The bonds currently sell for $845.

A. What is the bond's yield-to-maturity today? ____________%

B. If Chad requires a 10.0 percent annual return on his bond investments, what is the value of this bond to him? $_____________

C. Would you recommend Chad to buy this bond and why? Explain briefly either Yes, because.. No, because