Ryan purchased a bond for $980 at the beginning of 2011. He received annual interest payments of $55 at the end of each year through 2016 when the bond was redeemed at its face value of $1,000

Compute the yield (internal rate of return) Ryan earned on his bond purchase.
A) 5.50%
B) 5.61%
C) 5.91%
D) .34%


Answer: C

Business

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