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Suppose that today you buy a 6 percent annual bond, paid annually, for $1,010. The bond has 10 years to maturity. The rate of return

Suppose that today you buy a 6 percent annual bond, paid annually, for $1,010. The bond has 10 years to maturity. The rate of return you expect to earn on this bond is closest to:

A.

5.86%

B.

1.00%

C.

10.00%

D.

6.00%

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