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    Intel 9% coupon bond: What is average annual rate of return?

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    Assume the Intel Corporation's $1,000 face value 9 percent coupon rate bond matures in 10 years and sells for $1,100. If you purchase the bond for $1,100 and hold it to maturity, what will be your average annual rate of return on the investment?

    Please explain how you come up with answer.

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    Solution Summary

    The solution shows the calculations to arrive at an answer.