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What is the expected rate of return on a bond that matures

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Reference no: EM13575666

What is the expected rate of return on a bond that matures in7 years, has a par value of $1,000, a coupon rate of 14%, and iscurrently selling for $911? Round your answer to the nearest wholepercent, and assume annual coupon payments.

a. 15%

b. 14%

c. 2%

d. 16%

Reference no: EM13575666

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