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You buy a 7.25% $1,000 bond for $1,050, immediately after semiannual interest has been paid to the previous owner.Eight years later, you sell the bond

You buy a 7.25% $1,000 bond for $1,050, immediately after semiannual interest has been paid to the previous owner.Eight years later, you sell the bond for $987.50, immediately after you receive the semiannual interest check.What is your yield during ownership?

6.32%

13.46%

6.73%

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