Springfield Learning sold zero coupon bonds (bonds that don't pay any interest, instead the bondholder gets just one payment, coming when the bond matures, from the issuer) and received $1,100 for each bond that will pay $20,000 when it matures in 30 years.

a.At what rate is Springfield Learning borrowing the money from investors?

b.If Nancy Muntz purchased a bond at the offering for $1,100 and sold it 10 years later for the market price of $3,100, what annual rate of return did she earn?

c.If Barney Gumble purchased Muntz's bond at the market price ($3,100) and held it 20 years until maturity, what annual rate of return would he have earned?