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Enterprise, Inc., bonds have $1,000 par value with 8 percent coupon rate. The interest is paid annually, and bonds mature in 10 years. If your
Enterprise, Inc., bonds have $1,000 par value with 8 percent coupon rate. The interest is paid annually, and bonds mature in 10 years. If your required rate of return is 10 percent, what is the value of this bond? Royal, Inc., bonds have $1,000 par value with 8 percent coupon rate. The interest is paid semiannually, and bonds mature in 10 years. If your required rate of return is 8 percent, what is the value of this bond? Majestic International's bonds mature in 10 years and pay 10 percent interest annually. If you purchase the bonds for $1,200, what is your expected rate of return (yield to maturity) on this bond? Legacy industries bonds have face value of $1,000, 7% coupon rate, with 10-year to maturity. The market price of bond is $900, and your required rate of return is 10 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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