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You buy a $1,000 par value bond with a 7.5% coupon rate today for a price of $874.95. The bond has 7 years to maturity.

You buy a $1,000 par value bond with a 7.5% coupon rate today for a price of $874.95. The bond has 7 years to maturity. You sell the bond at the end of 3-years (Year 3). The bonds yield to maturity is 6% at the time of the sale. What is the IRR over the 3-year holding period for this investment?

12.46%

13.57%

14.43%

15.78%

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