Seven years ago, Goodwynn & Wolf Incorporated sold a 20-year bond issue with a 14% annual coupon
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Question:
Seven years ago, Goodwynn & Wolf Incorporated sold a 20-year bond issue with a 14% annual coupon rate and a 9% call premium. Today, G & W called the bonds. The bonds originally were sold at their face value of $1000. Compute the realized rate of return for investors who purchased the bonds when they were issued and who surrender them today in exchange for the call price.
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