Fingen's
15​-year,
​$1,000
par value bonds pay
14
percent interest annually. The market price of the bonds is
​$880
and the​ market's required yield to maturity on a​ comparable-risk bond is
15
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?