Question
Suppose that the US Treasury offers to sell you a bond for $4,500. No payments will be made until the bond matures 10 years from
Suppose that the US Treasury offers to sell you a bond for $4,500. No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $7,000. What interest rate would you earn if you bought this bond at the offer price?
| 14.26% | ||
| 2.23% | ||
| 4.52% | ||
| 13.01% |
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Finance Introduction To Institutions Investments And Management
Authors: Ronald W. Melicher, Edgar A. Norton
11th Edition
0470004460, 978-0470004463
