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Seven years ago, G&W Incorporated sold a 20-year bond issue with a 14% coupon rate and a 9% call premium. Today, G&W called the bonds.
Seven years ago, G&W Incorporated sold a 20-year bond issue with a 14% coupon rate and a 9% call premium. Today, G&W called the bonds. The bonds originally were sold at their face value of $1,000. 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. Use formula/interpolation method to solve manually step by step
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