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An investor purchases a bond for its par value ($1,000). The bond has an 10% coupon rate, pays coupons semi-annually, and matures in one year.
An investor purchases a bond for its par value ($1,000). The bond has an 10% coupon rate, pays coupons semi-annually, and matures in one year. The investor reinvests the coupon payments in a saving account earning 1% semi-annual APR. What is the investors realized return for the year expressed as a semi-annual APR?
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