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30. A coupon bond that pays interest of 7% annually has a par value of S1,000, matures in 3 years, and is selling today at

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30. A coupon bond that pays interest of 7% annually has a par value of S1,000, matures in 3 years, and is selling today at $957. What is the effective rate of return you will earn on this bond if you are able to reinvest your coupon payments at the following rates: Year 1: 8.2%; Year 2: 8.0%. A. 7.00% B. 8.10% C. 8.13% D. 8.65% E. 8.69%

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