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What is the rate of return for an investor

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What is the rate of return for an investor who pays $1,054.47 for a three- year bond with a 7 percent coupon and sells the bond one year later for $1,037.19? Assume the investor can reinvest the coupons at a 9% APR with semi-annual compounding. The bond pays coupons semi-annually and has a face value of $1,000.

Reference no: EM133004007

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