What interest rate was earned by the company on bond

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Reference no: EM131268350

A small company bought a BMI bond at its face value on January 1, 1995. This bond pays interest of 7.25% every six months (14.5% per year). The face value of the bond is $100,000, and it matures on December 31, 2006. On January 1, 2005, this bond was sold for $110,000. What interest rate (per six months) was earned by the company on the BMI bond?

Reference no: EM131268350

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