(Bond valuation) You own a 10-year $1.000 par value bond paying 7 percent interest annually. The market price of the bond is $750, and your required rate of retum is 13 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 sell the bond or continue to own it? a. What is the expected rate of return of the 10-year $1.000 par value bord paying 7 percent interest annually its market price in $750? % (Round to two decimal places.) b. What is the value of the bond to you, given your 13 percent required rate of return? (Round to the nearest cent) c. Should you set the bond or continue to own 17 (Select the best choice below) OA. You should be the bond because the band's yield to maturity is higher than your expected rate of retum and thus it is undervalued OB. You should continue to hold the bond because the bond's yield to maturity is higher than your expected rate of return and thus it is undervalued OC. You should sell the bond because the bond's yield to maturity is lower than your expected rate of retumn and fun kle overvalued D. You should continue to hold the bond because the bond yield to maturity is lower than your expected este of return and thus it is overvalued