Compute the realized rate of return for an investor

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Five years ago the Singleton Company issued 20-year bonds with a 12% annual coupon rate at their $1,000 par value. The bonds had an 8% call premium, with 5 years of call protection. Today Singleton called the bonds. Compute the realized rate of return for an investor who purchased the bonds when they issued and held them until they were called. Answer as a percentage with 2 decimals (ex. 10.00%).

Reference no: EM132675644

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