Multiple Choice
Tara purchases a 20-year, 5 percent savings bond with a face value of $10,000 at a premium price of $11,000. She gets the dividend paid yearly. Determine the rate of return on the bond if the bond is kept till maturity.
A) 3.79%
B) 4.62%
C) 5.33%
D) 2.38%
Correct Answer:
Verified
Correct Answer:
Verified
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