Four years ago, Chevron issued $5 million worth of debenture bonds with a coupon rate of 10%

Question:

Four years ago, Chevron issued $5 million worth of debenture bonds with a rate of 10% per year, payable semiannually. Market interest rates dropped, and the company called the bonds (i.e., paid them off in advance) at a 10% premium on the face value. Therefore, it cost the $5.5 million to retire the bonds. What semiannual rate of return did an investor make who purchased a $5000 bond 4 years ago and held it until it was called 4 years later?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...