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Jones Corporation has $1,000 par value bonds that have eight years until maturity. The coupon rate is 5.50% and interest is paid semi-annually. The current

Jones Corporation has $1,000 par value bonds that have eight years until maturity. The coupon rate is 5.50% and interest is paid semi-annually. The current price of the bond in the market place is $872.15. The United States treasury bond rate is 2.25% and Jones's beta is 1.20. Jones's tax rate is 28%. What is the return rate that bond investors are seeking form Jones?

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