Suppose X Corp. issued one-year discount bonds with a face value of $5,000 and the bonds were sold for $4,800. What was the interest rate for these one-year discount bonds? 4.00% 4.17% 5.10% None of the above

Suppose X Corp. issued one-year discount bonds with a face value of $5,000 and the bonds were sold for $4,800. What was the interest rate for these one-year discount bonds? 4.00% 4.17% 5.10% None of the above

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: The Basic Tools Of Finance

Section: Chapter Questions

Problem 6PA

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Question

Suppose X Corp. issued one-year discount bonds with a face value of $5,000 and the
bonds were sold for $4,800. What was the interest rate for these one-year discount
bonds?
4.00%
4.17%
5.10%
O None of the above

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