Question
You have just purchased a U.S. Treasury bond for $607.25. No payments will be made until the bond matures 5 years from now, at which
You have just purchased a U.S. Treasury bond for $607.25. 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 will you earn on this bond?
Select the correct answer.
a. 9.09%b. 10.49%c. 13.29%d. 7.69%e. 11.89%
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
