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(Bondholders' expected rate of return) The market price is $1,050 for a 16-year bond ($1,000 par value) that pays 9 percent interest (4.5 percent semiannually.

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(Bondholders' expected rate of return) The market price is $1,050 for a 16-year bond ($1,000 par value) that pays 9 percent interest (4.5 percent semiannually. What is the bond's expected rate of return? The bond's expected annual rate of return is % (Round to two decimal places.)

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