Bones Ely owns a $1,000 face-value bond with three years to maturity. The bond makes annual interest

Question:

Bones Ely owns a $1,000 face-value bond with three years to maturity. The bond makes annual interest payments of $75, the first to be made one year from today. The bond is currently priced at $975.48. Given an appropriate of 10%, should Bones hold or sell the bond?
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...