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Problem:

National stee15 year, $1000 par value bonds pay 12 percent annually. The market price is $975.

What is the Expected return rate of the 20 year bond paying 8percent if its price is $925?
Determine the value of the bond to you given your return rate
Should you purchase the bond?

Note: Please provide equation and explain comprehensively and give step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91148341

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