Compute the realized return for investors who bought the


Marcy LLC sold a 20 -year bond issue 7 years ago. it had a 12% annual coupon rate, paid semiannually and an 8% call premium. (i.e, paid 8% premium to face value if called.) Today, the company called the bonds. the bonds where originally sold at their face value of $1000,. Compute the realized return for investors who bought the bonds at issue and had them called away today.

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Financial Management: Compute the realized return for investors who bought the
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