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An investor purchased a five percent, $1000 30-year bond for $850 with 22 years to maturity. The interest was payable quarterly. The bond was kept for only nine years and sold for $950 immediately after the 36th interest payment was received. What nominal and effective rates of return per year were made on this investment?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91224411

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