The market price is $975 for a 14-year bond ($1000 par value) that pays 9 percent interest (4.5 percent semiannually). What is the bond's expected rate of return? The bond's expected annual rate of return is?
Bond's Expected semi annual rate of return = 4.66%
Bond's Expected annual rate of return = 2 * Bond's Expected semi annual rate of return
Bond's Expected annual rate of return = 9.32%
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