Calculate the realized rate of return for investors

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Reference no: EM1363439

Seven years ago, Goodwyn & Wolf Incorporated sold a 20-year bond issue with 14% annual coupon rate and a 9% call premium. Today, G&W called the bonds. The bonds were originally sold at their face value of $1000. Compute the realized rate of return for investors who purchased the bonds when they were issued and who surrender them today in exchange for the call price

Reference no: EM1363439

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