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The 9 year $1000 par bonds of corporation pay 12 percent interest. The markets required yield to maturity on a comparable risk bond is 9
The 9 year $1000 par bonds of
corporation pay 12 percent interest. The markets required yield to maturity on a comparable risk bond is 9 percent. The current market price for the bond is $1090.
a) determine the yield to maturity
b) what is the value of the bonds to you given the yield to maturity on a comparable risk bond?
c) should you purchased a bond at the current market price?
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Multinational Financial Management
Authors: Shapiro A.C.
9th International Edition
8126536934, 9788126536931
