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Sharp Co. bonds are selling in the market for $800. These 19-year bonds pay 12 percent interest annually on a $1,000 par value. If they

Sharp Co. bonds are selling in the market for $800. These 19-year bonds pay 12 percent interest annually on a $1,000 par value. If they are purchased at the market price, what is the expected rate of return?

The bond's expected rate of return is ____%

The answer is not:

$800/$1000= 0.800

12/.800= 15%

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