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A coupon bond that pays interest of 4% annually has a par value of $1000, matures in 4 years and is selling today at $785.

A coupon bond that pays interest of 4% annually has a par value of $1000, matures in 4 years and is selling today at $785. The effective rate of return you will earn on this bond if you do not reinvest the coupon payments would be __________?

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