Suppose the U.S. Treasury offers to sell you a bond for $3,000. No payments will be...

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Suppose the U.S. Treasury offers to sell you a bond for $3,000. No payments will be...

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 $5,600. What interest rate would you earn if you bought

this bond at the offer price?

	a.	7.47%
	b.	5.41%
	c.	6.44%
	d.	6.25%
	e.	7.92%

You plan to invest in securities that pay 11.6%, compounded annually. If you invest $5,000 today, how many

years will it take for your investment to grow to $9,140.20?

	a.	6.10
	b.	4.73
	c.	6.43
	d.	4.18
	e.	5.50

business finance

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Answer 1

Answer #1

rate =r= (fv/pv)^(1/t)-1 Interest rate = r = 6.44% ( annual rate of return ] (( 5600/3000)^(1/10)-1)

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Answer 2

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Suppose the U.S. Treasury offers to sell you a bond for $3,000. No payments will be...

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