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Fingen's 13- year, $1,000 par value bonds pay 9 percent interest annually. The market price of the bonds is $900 and the market's required yield
Fingen's 13- year, $1,000 par value bonds pay 9 percent interest annually. The market price of the bonds is $900 and the market's required yield to maturity on a comparable-risk bond is 12 percent.
What is your yield to maturity on the Fingen bonds given the market price of the bonds?
What should be the value of the Fingen bonds given your required rate of return on a comparable bond?
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