ally purchase a discount bond today for a price of $3333. the bond promises a cash flow of $5550 in 5 years . ally holds the bonds for one year and sells it . when she sells it the interest rate is at 6 % . in this case what is one year rate of return for ally ?

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A: Please find the answers to the above questions below:

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A: Solution:- Rate of return means the percentage of yield earned by holding an asset.

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