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Last year, Sally purchased a $1,000 face value corporate bond with an 11.3 percent annual coupon rate and a 17-year maturity. At the time of
Last year, Sally purchased a $1,000 face value corporate bond with an 11.3 percent annual coupon rate and a 17-year maturity. At the time of the purchase, it had an expected yield to maturity of 10.7 percent. If Sally sold the bond today for $1,081.60, what rate of return would she have earned for the past year?
a. | 3.39% | |
b. | 14.69% | |
c. | 13.73% | |
d. | 14.19% | |
e. | 11.30% |
Please show work, and what to put into a TI-83 to get the answer, thank you!
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