Gary owns investment A and 1 bond B. The total value of his holdings is...

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Accounting

Gary owns investment A and 1 bond B. The total value of his holdings is $3,930.00. Bond B has a coupon rate of 6.82 percent, par value of $1,000.00, YTM of 6.95 percent, 4 years until maturity, and semi-annual coupons with the next coupon due in 6 months. Investment A has an expected return of X and is expected to pay $706.51 per year for a finite number of years such that its first annual payment is expected later today and its last annual payment is expected in 4 years from today. What is X, the expected return for investment A?
10.08%(plus or minus 2 bps)
10.24%(plus or minus 2 bps)
6.52%(plus or minus 2 bps)
6.42%(plus or minus 2 bps)
none of the answers are within 2 bps of the correct answer

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