$($Bond

valuation$)$

You own a

$2020-$year,

$$$$1$ comma $0001,000$

par value bond paying

$6\mathrm{.}56\mathrm{.}5$

percent interest annually. The market price of the bond is

$$$$750750,$

and your required rate of return is

$1111$

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$?$

Question content area bottom

Part $1$

a$.$ What is the expected rate of return of the

$2020-$year,

$$$$1$ comma $0001,000$

par value bond paying

$6\mathrm{.}56\mathrm{.}5$

percent interest annually if its market price is

$$$$750750?$

enter your response here$\%$

$($Round to two decimal$$ places.$)$