Determine the rate of return on investment

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Reference no: EM131604009

Suppose a National Telephone and Telegraph (NTT) Company bond, maturing in one year, can be purchased today for $975. Assuming that the bond is held until maturity, the investor will receive $1,000 (principal) plus 7.5 percent (coupon) interest. Determine the rate of return on this investment.

Reference no: EM131604009

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