What is the pre-tax annual rate of return on this bond
Course:- Microeconomics
Reference No.:- EM13700155

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You buy a bond for $1118 that pays $20 interest every 6 months. It will reach maturity in 9 years at which time it will return its face value of $1000 plus the final $20 interest payment. What is the pre-tax annual rate of return on this bond? Estimate to 2 decimal places.

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