Question: Chapter 7 Round to two decimal places (Bondholders' expected rate of return) Sakara Co. bonds are selling in the market for $1,025. These 16-year bonds

Chapter 7

Chapter 7 Round to two decimal places (Bondholders' expected rate of return) Round to two decimal places

(Bondholders' expected rate of return) Sakara Co. bonds are selling in the market for $1,025. These 16-year bonds pay 8 percent interest annually on a $1,000 par value. If they are purchased at the market price, what is the expected rate of retun? The bond's expected rate of return is %. (Round to two decimal places.)

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