Determine the value of the bond

Reference no: EM13276242

National Steel 15-year, $1000.00 par value bonds pay 8 percent interest annually. The market price of the bonds is $1,085.00 and your required rate of return is 10 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? Please help step by step to answer this problem.

Reference no: EM13276242

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