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Nine years ago the Templeton Company issued 22-year bonds with an 11% annual coupon rate at their $1,000 par value. The bonds had an 9%
Nine years ago the Templeton Company issued 22-year bonds with an 11% annual coupon rate at their $1,000 par value. The bonds had an 9% call premium, with 5 years of call protection. Today Templeton called the bonds. Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called. Round your answer to two decimal places.
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