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A city is selling municipal bonds to finance a new rural road. The bonds, which will mature in 2 5 years, have a face value
A city is selling municipal bonds to finance a new rural road. The bonds, which will mature in years, have a face value of $
each with a dividend of per year, payable annually. Assume you purchased one bond at a discounted price of $ and then sold it
for $ one year later, immediately after receiving the annual dividend. What rate of return did you make on your investment? Round
the final answer to two decimal places.
The rate of return on the investment is
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