Pearson Etext For Foundations Of Finance -- Combo Access Card (10th Edition)
Pearson Etext For Foundations Of Finance -- Combo Access Card (10th Edition)
10th Edition
ISBN: 9780135639344
Author: Arthur J. Keown, John D Martin, J. William Petty
Publisher: PEARSON
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Chapter 7, Problem 3SP

(Bond valuation) You own a 20-year, $1,000 par value bond paying 7 percent interest annually. The market price of the bond is $875, and your required rate of return is 10 percent.

  1. a. Compute the bond’s expected rate of return.
  2. b. Determine the value of the bond to you, given your required rate of return.
  3. c. Should you sell the bond or continue to own it?
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Pearson Etext For Foundations Of Finance -- Combo Access Card (10th Edition)

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What happens to my bond when interest rates rise?; Author: The Financial Pipeline;https://www.youtube.com/watch?v=6uaXlI4CLOs;License: Standard Youtube License