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Calculate bond expected rate of return

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Problem 1: The bonds issued by Steels Co. bear a 6 % coupon, payable semiannually. The bonds mature in 11 years and have a $1,000 par value. Currently, the market price of the bond is $989, if your required rate of return is 9% calculate:

a. The bond expected rate of return.

your fair value of the bond considering your required rate of return. Is the bond a good investment for you?

 

Reference no: EM132916644

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