Fingen's 16-year, $1,000 par value bonds pay 11 percent interest annually. The market price of...
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Finance
Fingen's 16-year, $1,000 par value bonds pay 11 percent interest annually. The market price of the bonds is $1,080 and the market's required yield to maturity on a comparable-risk bond is 8 percent.
A. What is your yield to maturity on the Fingen bonds given the market price of the bonds?
B. If the yield to maturity on a comparable risk bond is 8 percent, what should be the value of the Fingen bonds?
C. Should you purchase the bond?
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