A young engineering company is a subcontractor in an effort to develop technology that will reliably detect and respond to release of a nuclear weapon. The company is in need of additional funding and issues a series of $$1,000$ face value bonds that pay a nominal annual rate of $8\%$ with quarterly payments. The bond matures in $5$ years.

Part a

$1$

If you buy one bond for $$940$ and keep it until maturity, what is your effective annual rate of return?