How should purchase the bond at the current market price

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Carl Corporation four-year $1,000 par bonds pay 12 percent interest. Your required rate of return is 9 percent. The current market price for the bond is $1,350.

Question a. Determine the expected rate of return.

Question b. What is the value of the bonds to you given your required rate of return?

Question c. Should you purchase the bond at the current market price?

Reference no: EM132589447

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