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(Related to Checkpoint 5.6) (Solving for Springfeld Learning sold zero coupon bonds (bonds thst don't pay any interest, instead the boncholder gets just one payment,
(Related to Checkpoint 5.6) (Solving for Springfeld Learning sold zero coupon bonds (bonds thst don't pay any interest, instead the boncholder gets just one payment, coming when the bond matures, from the issuer) and reoeived $1,000 for each bord that wil pay $20,000 when it matures in 40 years. a. At what rate is Springfield Learning borrowing the money from investors? b, f Nancy Muntz purchased a bond at the offering fc 1,000 and sold it 10 years later for th6 market price of 53,200, what annual rate of return did she earn? c. If Barney Gumble purchased Mntz's bond at the market price (S3,200) and held it 3D years until maturity, what annual rate of returm wouls he have earne? a. Al whal rale is Springlield Leag borowinng the rey from inveslors? 7.78 % Round to two decimal paces.) b if Nancy Muniz purchased a bond at tie 0 Bing fc$1 000 and sold it 10 ears later for he market price of FV hal armual rate of return dd she earn? 12.33 % (Round to two decimal places.) c. If Barney Gumble purchased Muntz's bond a the market price ($3,200) and held it 3D years until maturity, what annual rate of retum would he have earnec? % CRcund to two decimal plao
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