Question
The 12 year, $1000 par value bonds of Waco industries pay 11% interest annually. The market price of the bond is $1115, and the markets
The 12 year, $1000 par value bonds of Waco industries pay 11% interest annually. The market price of the bond is $1115, and the markets required yield to maturity on a compo risk round is 8%.
Compute the bonds yield to maturity
Determine the value of the bond to you given the markets required yield to maturity and a comparable risk bond
Should you purchase the bond?
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Financial Accounting
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
3rd Edition
0471372668, 978-0471372660
