If you purchase a zero coupon bond today for 225 and it matures at 1000 in 11 years what rate of return will you earn on that bond to the nearest 10th of 1 percent?

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1084879

2026-06-02 10:55

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Po =I (PVIFA kdn) + M(PVIF kdn) = $225 = $ 1,000 (PVIF) note 1 = 0 since this is a zero coupon bond. (PVIFkd, ) =0.317

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