$($Bond valuation$)$ You own a $1010-$year, $$$$1$ comma $0001,000$ par value bond paying $77$ percent interest annually. The market price of the bond is $$$$875875,$ and your required rate of return is $1010$ 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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Part $1$

a$.$ What is the expected rate of return of the $1010-$year, $$$$1$ comma $0001,000$ par value bond paying $77$ percent interest annually if its market price is $$$$875875$