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A $10,000 30-year bond with semiannual coupons of $300 each was purchased January 1, 1972 (just after payment of the coupon then due) for $12,500.

A $10,000 30-year bond with semiannual coupons of $300 each was purchased January 1, 1972 (just after payment of the coupon then due) for $12,500. The bond will be redeemed at 110% of par on July 1, 1997 (just after payment of the coupon then due.) In which of the following ranges is the effective annual yield rate to the purchaser?

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