value bonds

Fingen’s 12​-year, ​$1,000 par value bonds pay 14 percent interest annually. The market price of the bonds is ​$1,050 and the​ market’s required yield to maturity on a​ comparable-risk bond is 12 percent.

a.  Compute the​ bond’s yield to maturity.

b.  Determine the value of the bond to​ you, given your required rate of return.

c.  Should you purchase the​ bond?

What is your yield to maturity on the Fingen bonds given the market price of the​ bonds?

​% ​(Round to two decimal​ places.)