(Bondholders’ expected rate of return)The market price is $1,000 for a 16 year bond (1,000 par value) that pays 9 percent interest (4.5 percent semiannually) What is the bond’s expected rate of return?

(Bondholders’ expected rate of return)The market price is $1,000 for a 16 year bond (1,000 par value) that pays 9 percent interest (4.5 percent semiannually) What is the bond’s expected rate of return?



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