Question
Fingen's1212-year, $ 1 , 0 0 0 par value bonds pay 9 percent interest annually. The market price of the bonds is $ 1 ,
Fingen's1212-year,$1,000par value bonds pay 9percent interest annually. The market price of the bonds is $1,150
and themarket's required yield to maturity on acomparable-risk bond is 6percent.
(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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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
15th edition
1337671002, 978-1337395250
