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Compute the bonds expected rate of return should you sell


You own a 20?-year, 1,000 par value bond paying 8 percent interest annually. The market price of the bond is ?$750 and your required rate of return is 13 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 sell the bond or continue to own? it? ?

(Round to two decimal? places.)

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Financial Management: Compute the bonds expected rate of return should you sell
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