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ExxonMobil ​12 year bonds pay 9 percent interest annually on a ​$1,000 par value. If the...

ExxonMobil ​12 year bonds pay 9 percent interest annually on a ​$1,000 par value. If the bonds sell at $775 what is the​ bonds' expected rate of​ return? The​ bonds' expected rate of return is ?

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Expert Solution

The expected rate of return on the Bond is calculated using excel below

The expected rate of return is therefore = 12.76%

jeff jeffy answered 1 year ago
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