The 1 1 - year, $ 1 comma 0 0 0 par value bonds of Waco Industries

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Question:

The

11 -

year,

1

comma

000

par value bonds of Waco Industries pay

8

percent interest annually. The market price of the bond is

955,

and the

market's required yield to maturity on a

comparable

-

risk bond is

10

percent.

.

Compute the

bond's yield to maturity.

.

Determine the value of the bond to you given the

market's required yield to maturity on a

comparable

-

risk bond.

.

Should you purchase the

bond?

Posted Date: May 19, 2024 02:00 AM

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The 1 1 - year, $ 1 comma 0 0 0 par value bonds of Waco Industries

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