Question
The16-year,$1,000par value bonds of Waco Industries pay 7 percent interest annually. The market price of the bond is$1,085,and the market's required yield to maturity on
The16-year,$1,000par value bonds of Waco Industries pay 7 percent interest annually. The market price of the bond is$1,085,and the market's required yield to maturity on a comparable-risk bond is 5 percent. What should be the value of the Waco bonds given the market's required yield to maturity on a comparable-risk bond?
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Handbook Of Business Valuation
Authors: Thomas L. West, Jeffrey D. Jones
2nd Edition
0471297879, 978-0471297871
