You have a 20-year bond with par value of $ 1.000 paying 7% annually. The market price of the bond is $ 875, and your required rate of return is 10%....

You have a 20-year bond with par value of $ 1.000 paying 7% annually. The market price of the bond is $ 875, and your required rate of return is 10%.

to. Determine the expected rate of return of the bond.

b. Determine the value of the bonus for you, given your required rate of return.

c. You must sell the bond or continue with it?