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Alexandra bought a 7-year bond at a 7.50% discount to its par value of $1,000 three years ago. The bond has a 4.70% coupon rate
Alexandra bought a 7-year bond at a 7.50% discount to its par value of $1,000 three years ago. The bond has a 4.70% coupon rate payable semiannually. What was her effective annual rate of return if she sells the bond today for $1,090? Assume coupons are not reinvested.
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
17th Edition
1260247783, 978-1260247787
