please answer A B & C Home- - Studentsx ? ::: Apps O Home-mySNHU Do Homework Cha

Question

please answer A B & C

Home- - Studentsx ? ::: Apps O Home-mySNHU Do Homework Charlene x Secure https://ww w.mathal com tudent/PlayerHomework.aspx?homeworkid 481450151&questiorld-Hluthedefalsea; d 499mmek http-run tes2nuc O Notes web Access D msc (i) D NUnet phone ? Nu et Search D nurs Enter Ste msc et H nne FIN-320-X5416 Principles of Finance 18EW5 Charene Foster &1 6/20/18 1:01 PM Homework: 7-1 MyFinanceLab Assignment Score: 1 of 4 pts & P9-13 (similar to) Save 4 7 of 12 (7 complete)Y HW Score: 40%, 20 of 50 pts uestion Help (Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation) Fingen's 14 yield to maturity on a comparable-risk bond is 8 percent -year $1,000 par value bonds pay 12 percent interest annually The market price of the bonds is $t 150 and he markef's equred a. Compute the bond's yield to maturity b. Determine the value of the bond to you. given your required rate of returrn c. Should you purchase the bond? a. What is your yield to maturity on the Fingen bonds given the market price of the bonds? % (Round to two decimal places)

Explanation / Answer

FV = 1000, N = 14, PMT = 120, PV = -1150

use rate function in Excel

a) yield to maturity = 9.97%

FV = 1000, N = 14, PMT = 120, rate = 8%

use PV funciton in Excel

b) value of bond = 1,329.77

c) yes since the price is less than the value

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