What is return rate that bond investors are seeking

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Problem 1: Jones Corporation has a zero-coupon $1,000 par value bond that has eight years until maturity. The current price of the bond in the market place is $542.83. The United States treasury bond rate is 2.75% and Jones's beta is 0.90. Jones's tax rate is 25%. What is the return rate that bond investors are seeking form Jones?

Reference no: EM132987230

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