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Business, 26.02.2020 04:14 melaniem50

Suppose the U. S. Treasury offers to sell you a bond for $3,000. No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $5,000. What interest rate would you earn if you bought this bond at the offer price? (Hint: Be careful about the sign of cash flows because this problem is to solve for the interest rate.)

a. 3.82%
b. 4.25%
c. 4.72%
d. 5.24%
e. 5.77%

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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...
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