Annual compound rate of return off your original investment

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Reference no: EM13913884

You purchased a five year annual payment 6% coupon bond for $1,000 and you planned on holding it to maturity. However right after you bought the bond it was called at $1,043.29 when all interest rates fell to 5% and remained there for the full five years. You reinvested the money for the full five years. What was your annual compound rate of return off your original investment?

A. 6.00% B. 5.89% C. 5.75% D. 5.23% E. 5.00%

Reference no: EM13913884

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