​(Bond valuation​) You own a 15​-year, ​$1 comma 000 par valuebond paying 6.5 percent interest annually. The market price of thebond is ​$750​, and your required rate of return is 11 percent.
a. Compute the​ bond's expected rate of return.
b. Determine the value of the bond to​ you, given your requiredrate of return.
c. Should you sell the bond or continue to own​ it?
a. What is the expected rate of return of the
15​-year,$1,000 par value bond paying
6.5 percent interest annually if its market price is
​$750?
