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Fingen's 16-year, $1,000 par value bonds pay 12 percent interest annually. The market price of the bonds is $940 and the market's required yield to

Fingen's

16-year,

$1,000

par value bonds pay

percent interest annually. The market price of the bonds is

$940

and the market's required yield to maturity on acomparable-risk bond is

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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