Fingen’s 16 year, $1,000 par value bonds pay 13 percent interest annually.
June 7th, 2024
(Bond valuation) Fingen’s 16 year, $1,000 par value bonds pay 13 percent interest annually. The market price of the bonds is $1,150 and the market’s required yield to maturity on a comparable-risk bond is 12 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?