Question: QUESTION 1 DISCUSS THE DIFFERENT INTEREST RATE MEASURES. USE THE FOLLOWING VARIABLES TO DEMONSTRATE HOW THEY ARE APPLIED. BOND PRICE 4 YEARS AGO $765 SELLING

QUESTION 1 DISCUSS THE DIFFERENT INTEREST RATE MEASURES. USE THE FOLLOWING

QUESTION 1 DISCUSS THE DIFFERENT INTEREST RATE MEASURES. USE THE FOLLOWING VARIABLES TO DEMONSTRATE HOW THEY ARE APPLIED. BOND PRICE 4 YEARS AGO $765 SELLING TODAY AT $815 REQUIRED RATE OF RETURN IS 5.5% BOND PAID $75 ANNUALLY EACH YEAR OF THE BOND, ON THE LAST DAY OF THE YEAR YOU INTEND TO HOLD THE BOND 5 MORE YEARS AND SELL IT FOR $835, WITH THE BOND CONTIUING TO PAY $75 IN INTEREST PER YEAR WHAT IS THE FAIR PRESENT VALUE? WHAT SHOULD YOU DO WITH IT? WHAT IS THE EXPECTED RATE OF RETURN? ARE YOUR EXPECTATIONS BEING MET? WHAT IS THE REALIZED RATE OF RETURN? WHY ARE THESE MEASURES IMPORTANT

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