Question $7$

$4$ points

Suppose that the price of the U$.$S$.$ Treasury bond is $$690.$ Payments will not be made until the bond matures $6$ years from now, at which time it will be redeemed for $$1,250.$ Which of the following formula calculates the interest rate you would earn if you purchased this bond at the offer price?

$\backslash$table$[[,$A$,$B$],[1,$Current price,$690],[2,$Value redeemed,$1,250],[3,$Years to matnurity,$6],[1,,]]$

$=$RATE$(B3,0,B1,B2,0,0)$

$=$RATE$(B3,-B1,0,B2,0,0)$

$=$RATE$(B3,B1,0,B2,0,0)$

$=$RATE$(B3,0,-B1,B2,0,0)$