(Bond valuation) National Steel's 15-year $1,000 par value bonds pay 55 percent interest annually. The market price of the bonds is $1.085, and your required rate of retum is 7 percent a. Compute the bond's expected rate of retum b. Determine the value of the bond to you, given your required rate of retum c. Should you purchase the bond? a. What is the expected rate of return of the bond? % (Round to two decimal places.) b. What is the value of the bond to you, given your 7 percent required rate of return? $ (Round to the nearest cent) c. Should you purchase the bond? (Select the best choice below.) O A. Yes. Since the expected rate of return is more than your required rate of return, the bond is an acceptable investment O B. No. Since the expected rate of return is less than your required rate of retum, the bond is not an acceptable investment OC. Yes. Since the expected rate of return is less than your required rate of return the bond is an acceptable investment, OD. No. Since the expected rate of return is more than your required rate of return, the bond is not an acceptable investment