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XYZ Corporation issued a 15-year bond that pays 10% annual coupon rate. The bond is currently selling for $1,100. a. Compute the bond's yield-to-maturity. b.

XYZ Corporation issued a 15-year bond that pays 10% annual coupon rate. The bond is currently selling for $1,100.

a. Compute the bond's yield-to-maturity.

b. Estimate the value of the bond to you, if the required return to maturity on a comparable-risk bond is 7%.

c. Recommend if you should purchase this bond.

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