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home / study / business / finance / finance questions andanswers / ​(bond valuation​) you own a 15​-year, ​$1 comma 000 parvalue bond paying 6.5 percent ... Question: ​(Bond valuation​) Youown a 15​-year, ​$1 comma 000 par value bond paying 6.5 percentinterest a... ​(Bond valuation​) You own a 15​-year, ​$1 comma 000par value bond paying 6.5 percent interest annually. The marketprice of the bond is ​$750​, and your required rate of return is 11percent. a. Compute the​ bond's expected rate of return. b.Determine the value of the bond to​ you, given your required rateof return. c. Should you sell the bond or continue to own​ it? a.What is the expected rate of return of the 15​-year,$1,000 parvalue bond paying 6.5 percent interest annually if its market priceis ​$750?

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3.7 Ratings (594 Votes)
1expected rate of bondUsing rate function in MS excel ratenperpmtpvfvtypenper 15 pmt    See Answer
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