Natural Colour Co. wants to invest in a bond with par value of $ 1000 that offers 10% coupons paid semi-annually. The bond has 15 years to maturity and has a yield to maturity of 9%. If the current market value of the bond is % $ 1.100, will you recommend the firm to buy the bond? Explain

Answer rating: 100% (QA)

To determine whether Natural Colour Co should invest in the bond we need to calculate the bonds yiel... View the full answer