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Effective annual rate of return over holding period

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You buy a bond with a $1,000 par value today for a price of $875. The bond has 6 years to maturity and makes annual coupon payments of $75 per year. You hold the bond to maturity, but you do not reinvest any of your coupons. What was your effective annual rate of return over the holding period?

Reference no: EM132535462

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