The 18 -year, $1,000 par value bonds of Waco Industries pay 7 percent interest annually....
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Accounting
The 18 -year, $1,000 par value bonds of Waco Industries pay 7 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 8 percent. a. Compute the bond's yield to maturity. (Round to two decimal places.)
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?
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