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(Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation) Fingen's 17-year, $1,000 par value bonds pay 12 percent
Posted: Wed Mar 30, 2022 3:38 pm
by answerhappygod
- Related To Checkpoint 9 2 And Checkpoint 9 3 Bond Valuation Fingen S 17 Year 1 000 Par Value Bonds Pay 12 Percent 1 (14.87 KiB) Viewed 38 times
(Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation) Fingen's 17-year, $1,000 par value bonds pay 12 percent interest annually. The price of the bonds is $890 and the market's required yield to maturity on a comparable-risk bond is 15 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? a. What is your yield to maturity on the Fingen bonds given the market price of the bonds? [ % (Round to two decimal places.)