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A 10 -year, 10.00%,$3,000 bond that pays dividends quarterly can be purchased for $2,720. This means that $2,720 is spent on the bond now. Every
A 10 -year, 10.00%,$3,000 bond that pays dividends quarterly can be purchased for $2,720. This means that $2,720 is spent on the bond now. Every quarter, $75.00 is provided to the purchaser as the dividend. After 10 years, $3,000 is given to the purchaser. If the bond is purchased and pays as scheduled, which of the following ranges of effective rate of return will the purchaser receive? 11.30%12.30% 10.00%10.50% 12.31%14.31% 10.50%11.05%
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