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Seven years ago the Davidson, Inc. issued 20-year bonds with an 11% annual coupon rate at their $1,000 par value. The bonds had a
Seven years ago the Davidson, Inc. issued 20-year bonds with an 11% annual coupon rate at their $1,000 par value. The bonds had a 7.5% call premium or $1075 (1000 * 1.075), with 5 years of call protection. Today Davidson called the bonds. Compute the realized rate of return for an 2 investor who purchased the bonds when they were issued and held them until they were called. Assume interest is paid semi-annually. 3 Please put your answer in the yellow cell. 4 5 5 7 : Using Excel Using Financial Calculator
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