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Suppose the U.S. Treasury offers to sell you a bond for $788.77. No payments will be made until the bond matures 5 years from now,
Suppose the U.S. Treasury offers to sell you a bond for $788.77. 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?
Group of answer choices
5.40%
4.86%
6.00%
6.60%
4.37%
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