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Lynn owns investment A and 1 bond B . The total value of his holdings is $ 3 , 3 7 0 . 0 0

Lynn owns investment A and 1 bond B. The total value of his holdings is $3,370.00. Bond B has a coupon rate of 11.76 percent, par value of $1,000.00,YTM of 11.16 percent, 13 years until maturity, and semi-annual coupons with the next coupon due in 6 months. Investment A is expected to pay annual cash flows to Reg of $388.50 per year forever with the first annual cash flow expected in 1 year from today. What is the expected return for investment A?
21.47%(plus or minus 2bps)
16.69%(plus or minus 2 bps)
16.68%(plus or minus 2bps)
11.53%(plus or minus 2bps)
none of the answers are within 2 bps of the correct answer
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