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Bond value- You own a 20 year ,1000 par value bond paying 8 percent interest annually.The market price of the bond is $925 and your
- Bond value-
- You own a 20 year ,1000 par value bond paying 8 percent interest annually.The market price of the bond is $925 and your required rate is 10 percent.
- What is the Expected return rate of the 20 year bond paying 8 percent if its price is $925?.
- Determine the value of the bond to you given your return rate
- Should you sell the bond or continue to own it?
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