Problem:
National Steel 15-year, $1000.00 par value bonds pay 8 percent interest annually. The market price of the bonds is $1,085.00 and your required rate of return is 10 percent.
Required:
Question 1: Compute the bond's expected rate of return.
Question 2: Determine the value of the bond to you, given your required rate of return.
Question 3: Should you purchase the bond?
Note: Please show guided help with steps and answer.