Treasury offers to sell bond

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Reference no: EM131908772

1. Suppose the US treasury offers to sell you a bond for $3000. No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $5000. What annual interest rate would you earn if you bought this bond at the offer price?

2. You plan to invest bonds that pay 6% compounded annually. if you invest $10000 today, how many years will it take for your investment to grow to $30000?

Reference no: EM131908772

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