Problem $9\mathrm{.}2$: Consider the Acme Corporation issued $20-$year bonds exactly $1$ year ago today. These bonds come with a $$1,000$ par value and pay $6\mathrm{.}5$ percent annual interest with coupon payments made on a semi$-$annual basis. The market's required yield to maturity on a comparable$-$risk bond is $7$ percent. The current price for the bond is $$1,050.$ Answer using excel formuals and solve using excel.

a$.$ Determine the Yield to Maturity.

b$.$ What is the value of the bond to you given the yield to maturity on a comparable$-$risk bond?

c$.$ Should you purchase the bond at the current market price?

a$.$

$\backslash$table$[[$Coupon rate,$6\mathrm{.}5\%$