Suppose the U

Multiple Choice

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 $4,100.What interest rate would you earn if you bought this bond at the offer price?

A) 2.38%
B) 3.55%
C) 3.17%
D) 3.20%
E) 3.27%