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What is total percentage return on investment

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You purchased a bond for $900 one year ago. Today, you receive your only interest payment for the year of $100. The bond can currently be sold for $875.

What is your total percentage return on investment? Ignore tax effect.

a. 8.3%

b. 11.1%

c. 18.0%

d. 19.4%

e. 23.8%

I know the answer is A, but I need to know how to solve for it.

Reference no: EM132503950

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