Question $1$

A $10-$year, $9\mathrm{.}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\mathrm{.}50$ is

provided to the purchaser as 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?

$10\mathrm{.}20\%-11\mathrm{.}20\%$

$11\mathrm{.}21\%-13\mathrm{.}21\%$

$9\mathrm{.}00\%-9\mathrm{.}50\%$

$9\mathrm{.}50\%-9\mathrm{.}95\%$