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Please write out work (no financial calculator) (you can use excel if desired) Patsy Tebeau is considering investing in a bond currently selling for $8,785.07.

Please write out work (no financial calculator) (you can use excel if desired)

image text in transcribed Patsy Tebeau is considering investing in a bond currently selling for $8,785.07. The bond has four years to maturity, a $10,000 face value, and an 8% coupon rate. The next annual interest payment is due one year from today. The appropriate discount rate for investments of similar risk is 10%. a. Calculate the intrinsic value of the bond. On the basis of this calculation, should Patsy purchase the bond? b. Calculate the yield-to-maturity of the bond. On the bases of this calculation, should Patsy purchase the bond

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