7-9. (Bond valuation) National Steel's 15-year, $1,000 par value bonds pay 5.5 percent interest annually. The market price of the bonds is $1,085, and your required rate of return is 7 percent. a....

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Extracted text: 7-9. (Bond valuation) National Steel's 15-year, $1,000 par value bonds pay 5.5 percent interest annually. The market price of the bonds is $1,085, and your required rate of return is 7 percent. a. Compute the bond's expected rate of return. b. Determine the value of the bond to you given your required rate of return. c. Should you purchase the bond?