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An investor bought a $ 1000 par value bond with 6% annual coupons. The maturity date was exactly ten years after the purchase date and
An investor bought a $ 1000 par value bond with 6% annual coupons. The maturity date was exactly ten years after the purchase date and the redemption value was to be equal to the par value. The bond was purchased at a premium to yield 5% per annum. One year later, just after payment of the coupon, the bond was called in at 104% of par value. What was the investor's rate of return on his investment? A.0.01 B.0.02 C.0.03 D.0.04 E.0.05
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