You bought a bond five years ago for $904 per bond. The bond is now selling for $870. It also paid $70 in interest per year, which you reinvested in the bond. Calculate the realized rate of return earned on this bond. (Do not round intermediate calculations. Round your percentage answer to 2 decimal places. (e.g., 32.16))
Let realized rate of return be x%
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At this rate;present value of interest and future value=904
Hence x=realized rate of return=7.09%(Approx).