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10 years ago, you invested in a 20-year 4% semi-annual coupon bond with a face value $1,000 for $980. Today, the bond issuer announces that

10 years ago, you invested in a 20-year 4% semi-annual coupon bond with a face value $1,000 for $980. Today, the bond issuer announces that default occurs with a renegotiation price $700. If you accept the renegotiation price today, what is your realized annual rate of return for the last 10 years? Show your work and explain

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