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E F 9b-2 The seven-year, $1,000 par value bonds of the Quist Mountain Mist Beverage Co. pay 9.0 percent interest (assume semi-annual payments). the market's
E F 9b-2 The seven-year, $1,000 par value bonds of the Quist Mountain Mist Beverage Co. pay 9.0 percent interest (assume semi-annual payments). the market's required yield to maturity on a comparable-risk bond is 7 percent. The current price for the bond is $1,100. a. Determine the Yield to Maturity. b. What is the value of the bond to you given the yield to maturity on a comparable-risk bond? c. Should you purchase the bond at the current market price? Par Value Coupon Rate Yrs to Maturity Required Rate of Return Valve of Bond YTM PV (price) Purchaase? 9h- 19h- 2 9b-395-4 Select Check Figures
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