What interest rate would you earn if you bought this bond

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Reference no: EM132020018

Solve the given problem

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?

Reference no: EM132020018

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