Compute the bond expected rate of return

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Reference no: EM131045690

National Steel 20 year, $1000 par value bonds pay 12 percent interest annually. The market price of the bonds is $975, and your required rate of return is 14 percent

A) Compute the bond's expected rate of return.

B) Determine the value of the bond to you, given your required rate of return.

C) Should you purchase the bond?

Reference no: EM131045690

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