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Marc just bought some AA - rated U . S . corporate bonds for clients' portfolios for 1 0 1 . 5 0 . The

Marc just bought some AA-rated U.S. corporate bonds for clients' portfolios for 101.50. The bonds pay an annual coupon rate of 9 percent of par value semi annually and mature in ten years. Gonzales is concerned, however, that he will only be able to reinvest the coupon payments at 6 percent over the life of the bonds If he is correct, what bond equivalent true return would his clients receive if they hold the bonds until maturity?
a 6.36 percent
b 7.93 percent
C.12.52 percent
d.3.97 percent.

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