Question: Bond Valuation. Sandy is considering purchasing bonds with a par value of $ 1 0 , 0 0 0 . The bonds have an annual

Bond Valuation. Sandy is considering purchasing bonds with a par value of $10,000. The bonds have an annual coupon rate of 8% and six years to maturity. The bonds are priced at $10,417. Sandy will only buy these bonds if the expected return from holding the bonds would generate a return of at least 9 percent. Should Sandy she buy these bonds?
If Sandy requires a 9% return, the amount she should be willing to pay for the bonds is $ (Round to the nearest dollar.)
If Sandy requires a 9% return, should she buy these bonds? (Select the best answer below.)
A. No; if the price exceeds what she should be willing to pay, Sandy's return would be less than 9%, so she should not buy these bonds.
B. Yes; if the price exceeds what she should be willing to pay, Sandy's return would be more than 9%, so she should buy these bonds.
Bond Valuation. Sandy is considering purchasing

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