What is the realized rate of return after redeeming

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Six years ago Ruby Carter invested $1,000 in a $1,000 par, 20year maturity, 9 percent annual coupon rate putable bond, which can be redeemed at $900 after 5 years. If the current required rate of return on similar bonds is 13 percent, should Ruby redeem the bond? What is the realized rate of return after redeeming? (Interest is paid annually.)

Reference no: EM131067583

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