A 10-year, 8.00%, $5,000 bond that pays dividends quarterly can be purchased for $4,532. This means that $4,532 is spent on the bond now. Every quarter, $100.00 is provided to the purchaser as the dividend. After 10 years, $5,000 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?

a)9.30% - 10.30%

b)8.00% - 8.50%

c)10.31% - 12.31%

d)8.50% - 9.05%

QUESTION 1 10 points A 10-year, 8.00%, $5,000 bond that pays dividends quarterly can be purchased for $4,532. This means that $4,532 is spent on the bond now. Every quarter, $100.00 is provided to the purchaser as the dividend. After 10 years, $5,000 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? O 9.30%-10.30% 8.00%-8.50% O 10.31%-12.31% O 8.50%-9.05%