Suppose the U.S. Treasury offers to sell you a bond for $744.00. No payments will be made until the bond matures 5 years from now, at which time it will be redeemed for $1,000. What interest rate would you earn if you bought this bond at the offer price? Assume semiannual compounding.

Suppose the U.S. Treasury offers to sell you a bond for $744.00. No payments will be made until the bond matures 5 years from now, at which time it will be redeemed for $1,000. What interest rate would you earn if you bought this bond at the offer price? Assume semiannual compounding. 6.00% 6.60% 3.00% 3.30% 4.86%