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Patty plans to purchase a bond. Which should she choose? The first is offered by GEI, Inc. and pays an interest rate of 7 %

Patty plans to purchase a bond. Which should she choose?
The first is offered by GEI, Inc. and pays an interest rate of 7%. The second option is offered by the city of Cortland, NY, and offers a return of 5.0%. She feels that the risk levels inherent in the two bonds are similar. They both mature in 10 years. She is in the 25% Federal tax bracket and lives in a state with no income tax.
The bond to choose would be (write either GEI or Cortland)
What is the rate of return she would expect from the bond she purchases? No % sign, two decimal places.

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