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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Your boss has indicated that he would like your help in determining the amount of a bond issue currently under review. The firm has bonds outstanding that have four years remaining to maturity, a coupon interest rate of 9% paid annually, and $1000 dollars par value. a) What is the yield to maturity on the bond issue of the current market price is $829 dollars? b) What is the yield to maturity on the bond issue if the current market price is $1104 dollars? c) Would you be willing to buy one of these bonds for $829. dollars if you required a 12% rate of return on the bond issue? Explain.
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