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(Bond valuation​) You own a 10​-year, ​$1,000 par value bond paying 6.5 percent interest annually. The...

(Bond valuation​) You own a 10​-year, ​$1,000 par value bond paying 6.5 percent interest annually. The market price of the bond is ​$925​, and your required rate of return is 9 percent.


a. Compute the​ bond's expected rate of return.
b. Determine the value of the bond to​ you, given your required rate of return.
c. Should you sell the bond or continue to own​ it?

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​(Yield to maturity​) Assume the market price of a 7​-year bond for Margaret Inc. is ​$1,100​, and it has a par value of $ $1,000. The bond has an annual interest rate of 9​% that is paid semiannually. What is the yield to maturity of the​ bond?

The yield to maturity of the bond is ____%

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jeff jeffy answered 1 year ago
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