Question: Answer with the formula without using excel. Thumbs up if correct San Miguel Companys 18-year, $1,000 par value bonds pay 6.5 percent interest annually. The

Answer with the formula without using excel. Thumbs up if correct

San Miguel Companys 18-year, $1,000 par value bonds pay 6.5 percent interest annually. The market price of the bond is $1,105, and your required rate of return is 8.5 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? Why or why not?

c. Should you purchase the bond? Why or why not?

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