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A A bank issues two 10-year par-value bonds providing annual coupons. Each bond sells for the same price and provides an annual effective yield rate

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A A bank issues two 10-year par-value bonds providing annual coupons. Each bond sells for the same price and provides an annual effective yield rate of 7%. The first bond has a redemption value of 3.000 and a coupon of 10% paid annualiy. The second bond has a redemption vaiue of 4,500 and a coupon of r% paid annually. Calculate r. A) 2.05% B) 4.25% C) 6.14% D) 8.32% E) 10.67%

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