Problem
On April 2, 1998, an engineer bought a $1000 bond of an American airline for $875. The bond paid 6% on its principal amount of $1000, half in each of its April 1 and October 1 semiannual payments;it repaid the $1000 principal sum on October 1, 2011. What nominal rate of return did the engineer receive from the bond if he held it to its maturity (on October 1, 2011)?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.