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 $5,600.What interest rate would you earn if you bought this bond at the offer price?

A) 7.47%
B) 5.41%
C) 6.44%
D) 6.25%
E) 7.92%