Business, 05.05.2020 17:44 payshencec21

A 10-year, 9.00%, $3,000 bond that pays dividends quarterly can be purchased for $2,775. This means that $2,775 is spent on the bond now. Every quarter, $67.50 is provided to the purchaser as to the dividend. After 10 years, $3,000 is given to the purchaser. If the bond is purchased and pays as scheduled, which of the following ranges of effective rate of return will the purchaser receive?
a. 10.2% - 11.2%
b. 9% - 9.5%
c. 11.21% - 13.21%
d. 9.5% - 9.95%

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A 10-year, 9.00%, $3,000 bond that pays dividends quarterly can be purchased for $2,775. This means...

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