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Would someone provide the solution with correct answer please? A 10-year, 10.00%, $5,000 bond that pays dividends quarterly can be purchased for $4,610. This means
Would someone provide the solution with correct answer please?
A 10-year, 10.00%, $5,000 bond that pays dividends quarterly can be purchased for $4,610. This means that $4,610 is spent on the bond now. Every quarter, $125.00 is provided to the purchaser as the dividend. After 10 years, $5,000 is given to the purchaser. If the bond is purchased and pays as scheduled, which of the following ranges of effective rate of return will the purchaser receive? O 11.00% - 12.00% 10.00% - 10.50% 12.01% - 14.01% 10.50% - 10.75%Step by Step Solution
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