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Suppose the U.S. Treasury offers to sell you a bond for $3,000. No payments will be made until the bond matures 15 years from now,
Suppose the U.S. Treasury offers to sell you a bond for $3,000. No payments will be made until the bond matures 15 years from now, at which time it will be redeemed for $5,600. What interest rate would you earn if you bought this bond at the offer price?
| 1. | 5.46% | |
| 2. | 6.44% | |
| 3. | 4.37% | |
| 4. | 3.58% | |
| 5. | 4.25% |
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