Fingen's 19-year, $, 000 par value bonds pay 8 percent interest annually. The market price of the bonds is $860 and the market's required yield
Fingen's 19-year, $, 000 par value bonds pay 8 percent interest annually. The market price of the bonds is $860 and the market's required yield to maturity on a comparable-risk bond is 11 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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Authors: George H Hempel
1st Edition
0133159604, 9780133159608
