A security promises to pay you

$40

every six months for 10 years and at the end of year 10 , it will pay you an additional

$1,000

. If you buy it at

$1,100

, what is the (annual) return on your investment?\ Hint: The number of semi-annual payments for 10 years should be 20.\

3.31%

\

8%

\

6.62%

\ None of the above

A security promises to pay you $40 every six months for 10 years and at the end of year 10 , it will pay you an additional $1,000. If you buy it at $1,100, what is the (annual) return on your investment? Hint: The number of semi-annual payments for 10 years should be 20 . 3.31% 8% 6.62% None of the above