Calculate the realized rate of return for an investor

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Reference no: EM132063896

Yield to call Nine years ago the Templeton Company issued 18-year bonds with a 11% annual coupon rate at their $1,000 par value.

The bonds had a 9% call premium, with 5 years of call protection. Today Templeton called the bonds.

Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called. %

Reference no: EM132063896

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