Fingen’s 11​-year, ​$1, 000 par value bonds pay 8 percent interest annually. The market price of the bonds is ​$1,050 and the​ market’s required yield to maturity on a​ comparable-risk bond is 9 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?

"Looking for a Similar Assignment? Order now and Get 10% Discount! Use Code "Newclient"