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For this problem, please use the appropriate rates the table in Appendix A. Imagine that on 1/25/2011 you bought a 10-year, $5,000, par value, 2%

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For this problem, please use the appropriate rates the table in Appendix A. Imagine that on 1/25/2011 you bought a 10-year, $5,000, par value, 2% annual coupon treasury bond for $4,434.36. Five years later (i.e. in January 2016), you sell the bond at a fair price. What annual rate of return have you earned on your investment? Appendix A - Interest Rates (%) 2 yr 1/25/2021 1/25/2016 1/25/2011 2/9/2006 1 yr 0.1 0.47 0.27 4.66 0.13 0.88 0.62 4.66 5 yr 0.42 1.47 1.96 4.55 7 yr 0.73 1.79 2.68 4.55 10 yr 1.05 2.03 3.35 4.54

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