Calculate the expected annual ror during the holding period

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Question: Ziad purchases a Treasury bond at E£900 (Egyptian pound). The Treasury bond has a par value of E£1,000, coupon interest rate of 12%, pays semiannual interest, and has 10 years to maturity. Ziad decides to hold the bond for the next four years and anticipates that its selling price at the end of four years will be E£1,120. Calculate the expected annual rate of return(ROR) (realized) during the holding period.

Reference no: EM131626273

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