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(Band valuation) You own a 10-year, $1,000 par value bond paying 7 percent interest anrudily. The market price of the bond is $175, and yout

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(Band valuation) You own a 10-year, $1,000 par value bond paying 7 percent interest anrudily. The market price of the bond is $175, and yout required tate of rebirn is 12 percent. a. Compute the bonds expected rate of return. b. Delermine the value of the bond to you, given your required rale of return. c. Should you sell the bond or continue to own it? a. What is the expected rate of relurn of the 10-year, $1,000 par vakie bond paying 7 perpent interest annually if is market price is 5775 ? Is (Round to two decimal places.)

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