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Part B (i) Four years ago, you purchased a 10 year bond issued by Blinken International, a global supplier of food additives for Year
Part B (i) Four years ago, you purchased a 10 year bond issued by Blinken International, a global supplier of food additives for Year Expected payments What was your expected return (%/year)? $44,950 1 $2,725 2 3 4 5 $2,725 $2,725 $2,725 $2,725 (ii) Now, beginning of Year 5, you want to sell the bond and find the price of the bond is At that price, what return (%/year) does a buyer of the bond expect? $40,250 (iii) What might explain the change in expectd return from the time you purchased the bond to now? (iv) What would be your return if you decide to sell the bond now? (v) What would determine whether you decide to sell or keep the bond? 6 $2,725 7 $2,725 8 $2,725 9 $2,725 10 $49,020
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