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Question: RG Coffee House issued a $1,000 par value bond that pays a 9 percent interest annually. The bond matures in 14 years and is

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  • Question:RG Coffee House issued a $1,000 par value bond that pays a 9 percent interest annually. The bond matures in 14 years and is currently selling at $1,120. Your required rate of return is 8.5 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 purchase the bond? Why?

Hi have attach below formula , how come your answer different . Which one is correct ? Can you send attachment as below I attached to you . I need something this formula works. Thanks

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