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 $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%