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Imagine that at time t a the asking price on a given bond is 105 and the bid price is 100. In the following period

Imagine that at time t a the asking price on a given bond is 105 and the bid price is 100. In the following period the asking price is 106 and the bid price is 101. The bond paid a coupon of 10 at time t+1. What is the rate of return on this bond?

answer choices

5.71%

10.47%

11.00%

None of the above

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