Suppose the us treasury offers to sell you a bond for 3000, Ask an Expert

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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 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?

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

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