A zero coupon bond is a bond that is sold now at a discount and will pay its face value when it matures. No interest payments are made. You buy a zero coupon bond with a face value of $18,000 that matures in 11 years for $6,000. What is your annual compound rate of return? ___________%. Round to the nearest thousandths of a percent (3 decimal places).
A zero coupon bond is a bond that is sold now at a discount and will pay its face value when it matures. No interest payments are made. You buy a zero coupon bond with a face value of $18,000 that matures in 11 years for $6,000. What is your annual compound rate of return? ___________%. Round to the nearest thousandths of a percent (3 decimal places).
Algebra and Trigonometry (MindTap Course List)
4th Edition
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter13: Sequences And Series
Section13.4: Mathematics Of Finance
Problem 21E
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A zero coupon bond is a bond that is sold now at a discount and will pay its face value when it matures. No interest payments are made.
You buy a zero coupon bond with a face value of $18,000 that matures in 11 years for $6,000. What is your annual compound rate of return?
___________%. Round to the nearest thousandths of a percent (3 decimal places).
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