Treasury offers to sell you a bond

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Reference no: EM13942937

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%

Reference no: EM13942937

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