1.Abner corporation's bond mature in 15 years and pay 12 percent interest annually. If you purchase the...
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Question:
1.Abner corporation's bond mature in 15 years and pay 12 percent interest annually. If you purchase the bonds for $825, what is your yield to maturity ?
2.The 10 year $ 1000 par bonds of vail inc pay 11 percent interest. The market's required yield to maturity on a comparable risk bond is 8 percent. The current market price for the bond is $1,110.
determine the yield to maturity
what is the value of the bond to you given the yield to maturity on a comparable risk bond?
should you purchase the bond at the current market price? Give reason (overpriced or underpriced)
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