You wish to purchase a debenture bond worth with a face

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You wish to purchase a debenture bond worth with a face value of $10,000. Before you buy, you want to know what your ROR will be. The bond matures in 8 years with a bond interest of 6% to be paid out every 6 months. If you pay $7,000 for the bond today, what would your annual rate of return be (nominal and nearest to)?

Reference no: EM13603499

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