What would be your annual rate of return

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A government bond carries a 5% coupon rate, pays semi-annual coupons, and has a $1,000 face value. If you purchase it today at $1,020 and expect to sell it 4 years from now at $1,100, what would be your annual rate of return if the coupons are reinvested at 3% APR semi-annually compounded?

Reference no: EM131991111

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