Assume that the State of Florida sold tax-exempt, zero coupon bonds with a $1,000 maturity value 5 years ago.The had a 25-year maturity when they were issued, and the interest rate built into the issue was 8 percent, compounded semiannually.The bonds are now callable at a premium of 4 percent over the accrued value.What effective annual return would an investor who bought the bonds when they were issued and who still owns them earn if they were ca today?

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The Answer of Assume that the State of Florida sold tax-exempt, zero coupon bonds with a $1,000 maturity value 5 years ago.The had a 25-year maturity when they were issued, and the interest rate built into the issue was 8 percent, compounded semiannually.The bonds are now callable at a premium of 4 percent over the accrued value.What effective annual return would an investor who bought the bonds when they were issued and who still owns them earn if they were ca today?

Assume That the State of Florida Sold Tax-Exempt, Zero Coupon