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

Question:

Suppose 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?

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...

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