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Pure Discount Bonds TERM Bond Price Face Value 1 $968.99 $1,000 2 $938.04 $1,000 3 $904.56 $1,000 4 $874.48 $1,000 Based on the information in

Pure Discount Bonds

TERM Bond Price Face Value

1 $968.99 $1,000

2 $938.04 $1,000

3 $904.56 $1,000

4 $874.48 $1,000

Based on the information in the table, what is the 3-year interest rate?

Group of answer choices

5.14%

10.55%

3.40%

2.54%

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