(Bond valuation). Fingen's 11-year, $1000 par value bonds pay 11% interest annually. The market price of the bond is $870 and the market's required yield to maturity on a comparable-risk bond is 15%.
a. Compute the bonds yield to maturity.
b. Determine the value of the bond to you, give your required rate of return.
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a. What is your yield to maturity on the Fingen bonds given the market price of the bonds? ______%
b. What should be the value of the Fingen bonds giving your required rate of return on a comparable bond? $_______.