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Fingen's 12 -year, $ 1,000 par value bonds pay 9 percent interest annually. The market price of the bonds is $ 1,050 and the market's

Fingen's 12-year, $1,000 par value bonds pay 9 percent interest annually. The market price of the bonds is $1,050 and the market's required yield to maturity on a comparable-risk bond is 7 percent.

a.Compute the bond's yield to maturity.

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

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