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You have a 20-year bond with an even value of $ 1,000 paying 6% annually. The market price of the bond is $ 875, and

You have a 20-year bond with an even value of $ 1,000 paying 6% annually. The market price of the bond is $ 875, and your required rate of return is 10%. Determine.

a. The value of the bond to you, given your required rate of return. b. The expected rate of return.

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