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Jakes 18-year, $1,000 par value bonds pay 11 percent interest annually. The market price of the bonds is $1,100 and the market's required yield to

Jakes 18-year, $1,000 par value bonds pay 11 percent interest annually. The market price of the bonds is $1,100 and the market's required yield to maturity on a comparable-risk bond is 8 percent.

a.Compute the bond's yield to maturity in %

(round to 2 decimal places)

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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