Compute the bonds expected rate of return

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Reference no: EM131910226

You own a 10?-year, $1000 par value bond paying 6 percent interest annually. The market price of the bond is $950, and your required rate of return is 8percent.

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 sell the bond or continue to own? it?

Reference no: EM131910226

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