Question: If the calculation is fully shown thumps up will be given San Miguel Companys 18-year, $1,000 par value bonds pay 6.5 percent interest annually. The

If the calculation is fully shown thumps up will be given

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 or return. c. Should you purchase the bond? Why or why not? (*You must show your calculation process as well.)

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