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Your firm has a regular bond outstanding. The bond has a face value of $1,000. The price or value of the bond today is $1,045.

Your firm has a regular bond outstanding. The bond has a face value of $1,000. The price or value of the bond today is $1,045. The bond has 12 years to maturity. Coupons are paid semi-annually. The coupon rate is 12.25%. What is the effective annual rate of return?

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