(Related to Checkpoint 9.2 and Checkpoint9.3)(Bond valuation)Fingen's 17-year, $1,000 par value bonds pay 14 percent interest annually. The market price of the bonds is $950 and themarket's required yield to maturity on acomparable-risk bond is 16 percent.

a.Compute thebond's yield to maturity.

b.Determine the value of the bond toyou, given your required rate of return.

c.Should you purchase thebond?

a.What is your yield to maturity on the Fingen bonds given the market price of thebonds?

nothing

% (Round to two decimalplaces.)

b.What should be the value of the Fingen bonds given your required rate of return on acomparable-bond?

$

(Round to the nearestcent.)