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Five years ago, Firm XXX sold a 20-year bond issue with a 9% annual coupon rate...

Five years ago, Firm XXX sold a 20-year bond issue with a 9% annual coupon rate and a 6% call premium. Today, the company called the bonds. The bonds originally were sold at their face value of $1,000. Compute the realized rate of return for investors who purchased the bonds when they were issued and who surrender them today in exchange for the call price.

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