Question: 7 . 3 . Tara purchases a 2 0 - year, 5 percent savings bond with a face value of $ 1 0 , 0

7.3. Tara purchases a 20-year, 5 percent savings bond with a face value of $10,000 at a premium
price of $11,000. She gets the dividend paid yearly. Determine the rate of return on the bond if the
bond is kept till maturity.

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