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pls answer and show work Question 1 10 pts A 10-year, 8.00%, $1,000 bond that pays dividends quarterly can be purchased for $912. This means
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Question 1 10 pts A 10-year, 8.00%, $1,000 bond that pays dividends quarterly can be purchased for $912. This means that $912 is spent on the bond now. Every quarter, $20.00 is provided to the purchaser as the dividend. After 10 years, $1,000 is given to the purchaser. If the bond is purchased and pays as scheduled, which of the following ranges of effective rate of return will the purchaser receive? 8.00% - 8.50% 9.60% - 10.60% 10.61% - 12.61% 8.50% -9.35%Step by Step Solution
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