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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 25 years, have a face value of $1,000
each with a dividend of 7% per year, payable annually. Assume you purchased one bond at a discounted price of $800 and then sold it
for $835 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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