Question: Answer it pls without financial calculator or Excel. ( Bond valuation ) National Steel 15-year, $1,000 par value bonds pay 5.5 percent interest annu- ally.

Answer it pls without financial calculator or Excel.

(Bond valuation) National Steel 15-year, $1,000 par value bonds pay 5.5 percent interest annu- ally. The market price of the bonds is $1,085, and your required rate of return is 7 percent.

a. Compute the bonds 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?

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