Realized rate of return for municipal bonds

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Reference no: EM13826697

Problem:

Six years ago, Bradford Community Hospital issued 20 year municipal bonds with a 7% annual coupon rate. The bonds were called today for a $70 call premium - that is, bondholders received $1070 for each bond. What is the realized rate of return for those investors who bought the bonds for $1000 when they were issued?

Additional Information:

This question is basically belongs to Finance and it explains about computing the realized rate of return for municipal bonds issued by a hospital. The solution has all the calculations.

Reference no: EM13826697

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