Suppose the U

Multiple Choice

Suppose the U.S.Treasury offers to sell you a bond for $747.25.No payments will be made until the bond matures 5 years from now,at which time it will be redeemed for $1,000.What interest rate would you earn if you bought this bond at the offer price?

A) 4.37%
B) 4.86%
C) 5.40%
D) 6.00%
E) 6.60%