A 10-year bond with a par value of $1000 and 11.0% coupons payable annually is selling at a price…

A 10-year bond with a par value of $1000 and 11.0% coupons payable annually is selling at a price of $1000. An investor has just bought the bond and is expecting to sell it in the secondary market in 5 years (immediately after a coupon payment). You forecast that the bond will have a yield to maturity of 16.0% per annum at the time that it is sold. Similarly, you expect a reinvestment rate of 10.0% can be earned each year on the coupons received by the investor. A) Based on the above information, what would be the rate of return per annum that you would expect the investor to earn on this bond investment? The expected rate of return on the bond investment is % per annum. (Round your answer to two decimal places)