Compute the expected rate of return

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1. You own a 15-year, $1,000 par value bond paying 6 percent interest annually. The market price of the bond is $875, and your required rate of return is 10 percent. Compute the expected rate of return.

2. You own a 15-year, $1,000 par value bond paying 6.5% interest annually. The market price of the bond is $875, and your required rate of return is 9 percent. What is the value of the bond

Reference no: EM133071752

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