Estimate the effective rate of interest on these bonds

Reference no: EM131421298

In October 1997, Hewlett-Packard issued zero coupon (stated interest rate = zero) bonds with a face value of $1.8 billion, due in 2017, for proceeds of $968 million.

a. What is the life of these bonds?

b. What is the stated interest rate on these bonds?

c. Estimate the effective rate of interest on these bonds.

d. How many bonds did HP issue?

Reference no: EM131421298

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