You wish to purchase a ten-year bond with a par value of


Question: 1. You wish to purchase a ten-year bond with a par value of $1000 that is selling for $800 with a coupon rate of 8%. Your required annual yield-to-maturity is 9%.

a. What is the Yield to Maturity for this bond?

b. Should you purchase this bond? Explain your answer.

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Accounting Basics: You wish to purchase a ten-year bond with a par value of
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