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( Bondholders' expected rate of return ) Sakara Co. bonds are selling in the market for $ 700. These 12 -year bonds pay 12 percent

( Bondholders' expected rate of return ) Sakara Co. bonds are selling in the market for $ 700. These 12 -year bonds pay 12 percent interest annually on a $ 1,000 par value. If they are purchased at the market price, what is the expected rate of return?

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