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Suppose your project is worth $ 8 6 2 with a probability of 0 . 9 5 and $ 5 2 0 with a probability

Suppose your project is worth $862 with a probability of 0.95 and $520 with a probability of 1-0.95. The appropriate cost of capital is 9.6% for the overall project. If you want to raise $696 today and promise to bond investors a rate of return of 6.8%, what's the expected rate of return of this bond? round to 4 decimals

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