If the market price of a 20 year pure discount bond with a face value of $1,000 is $214 55, what is the spot interest rate for the 20 year maturity expressed in percentage per annum ...

We know that the relationship between the price of a pure disc ...

If the market price of a 20-year pure discount bond with a face value of $1,000 is

Question:

If the market price of a 20-year pure discount bond with a of $1,000 is $214.55, what is the spot interest rate for the 20-year expressed in percentage per annum?

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...