You determine that the investors annual rate of return for


An investor buys a ten-year, $1,000 par value, 5.5% coupon bond for $1,025.50. He holds it for exactly one year, and then he sells it (immediately after receiving the first coupon payment). You determine that the investor's annual rate of return for the year was 2.44%. What must be the price at which the bond was sold?

1.$904
2.$933
3.$996
4.$1051

 

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Finance Basics: You determine that the investors annual rate of return for
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