Question: 3. Patsy Tebeau is considering investing in a bond currently selling for $8,785.07. The bond has four years to maturity, a $10,000 fnce value, and

3. Patsy Tebeau is considering investing in a bond currently selling for $8,785.07. The bond has four years to maturity, a $10,000 fnce value, and an 8% coupon rale. The next annual interest payment is due one year from today. The appropriate discount role for investments of similar risk is 10%. a. Calculate the intrinsic value of the bond. Based on this calculation, should Patsy purchase the bond? b. Calculate the yield-lo-maturity of the bond. Based on this calculation, should Patsy purchase the bond

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