contestada

The 12​-year, ​$1,000 par value bonds of Waco Industries pay 9 percent interest annually. The market price of the bond is ​$1,075​, and the​ market's required yield to maturity on a​ comparable-risk bond is 7 percent.
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?

Q&A Education