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On January 1, 1978, Jonathan Linden is obligated to pay annual level payments for sixteen years, beginning with a payment on January 1, 1979. His

On January 1, 1978, Jonathan Linden is obligated to pay annual level payments for sixteen years, beginning with a payment on January 1, 1979. His financial advisor tells him that this liability has a Macaulay duration of 7.39. Determine the annual effective interest rate that the advisor used to figure the duration.

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