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Riley purchased a $100 par value bond with 4% annual coupons, maturing in 10 years, and...

Riley purchased a $100 par value bond with 4% annual coupons, maturing in 10 years, and redeemable at par. She bought the bond at a premium to yield 3% per annum. One year later, just after the first coupon, the bond was called in at $107.

Riley's yield rate on this investment is?

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