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Suppose the U

Question 164

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 $4,000.What interest rate would you earn if you bought this bond at the offer price?


A) 3.33%
B) 2.60%
C) 2.92%
D) 3.44%
E) 3.62%

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