Question: Problem 9 . 3 : Waco Industries recently issued 1 5 - year, $ 1 , 0 0 0 par value bonds that pay 5

Problem 9.3: Waco Industries recently issued 15-year, $1,000 par value bonds that pay 5.5 percent annual interest and makes interest payments on an annual basis. The market price of the bond is $900, and the market's required yield to maturity
on a comparable-risk bond is 6 percent.Use excel and excel formulas to solve.
a. Compute the bond's Yield to Maturity.
b. Determine the value of the bond to you given the market's required yield to maturity on a comparable-risk bond.
c. Should you purchase the bond?
a.
\table[[Coupon rate,5.5%
Problem 9.3: Waco Industries recently issued 15-year, $1,000 par value bonds

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