Assume annual coupon payments


What is the expected rate of return on a bond that matures in7 years, has a par value of $1,000, a coupon rate of 14%, and iscurrently selling for $911? Round your answer to the nearest wholepercent, and assume annual coupon payments.

a. 15%

b. 14%

c. 2%

d. 16%

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Finance Basics: Assume annual coupon payments
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