Question $1(10$ points$)$

A man buys a corporate bond from a bond brokerage house for $$625.$ The bond has a

face value of $$1000$ and pays $6\%$ of its face value each year. If the bond will be paid

off at the end of $10$ years, what rate of return will the man receive?

$12\mathrm{.}88\%$

$6\%$

$7\mathrm{.}34\%$

$4\mathrm{.}18\%$