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On January 1, 2001, Isabella purchased a newly issued 20 year bond, with a 6% coupon paid annually and a par of $2500. At the

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On January 1, 2001, Isabella purchased a newly issued 20 year bond, with a 6% coupon paid annually and a par of $2500. At the time market rates were 8.6%. On Dec 31, 2006 rates suddenly dropped to 6%, and then again on Dec 31, 2009 rates dropped to 2.5%. At that time Isabella sold the bond. What was the realized rate of return over the life of this bond? A. What was the original purchase price

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