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Problem 9 . 3 : Waco Industries recently issued 1 5 - year, $ 1 , 0 0 0 par value bonds that pay 5
Problem : Waco Industries recently issued year, $ par value bonds that pay percent annual interest and makes interest payments on an annual basis. The market price of the bond is $ and the market's required yield to maturity
on a comparablerisk bond is percent.Use excel and excel formulas to solve.
a Compute the bond's Yield to Maturity.
b Determine the value of the bond to you given the market's required yield to maturity on a comparablerisk bond.
c Should you purchase the bond?
a
tableCoupon rate,
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