Question

**15 National Steel 15-year, $1,000 par value bonds pay 8 percent interest annually. The market price of the**

** bond is $1,085, 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? Reason.**

Financial Accounting

15 National Steel 15year $1 000 par value bonds pay 8 percent interest annually The market price of the