Fingen's 18-year, $1,000 par value bonds pay 15 percent interest annually. The market price of the bonds
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Question:
Fingen's 18-year, $1,000 par value bonds pay 15 percent interest annually. The market price of the bonds is $930 and the market's required yield to maturity on a comparable-risk bond is 18 percent.
a. Compute the bond's yield to maturity.
b. Determine the value of the bond to you, given your required rate of return.
c. Should you purchase the bond?
What is your yield to maturity on the Fingen bonds given the market price of the bonds? (Round to two decimal places.)
Related Book For
Financial Markets And Institutions
ISBN: 9781292215006
9th Global Edition
Authors: Stanley Eakins Frederic Mishkin
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