What is the effective annual return over the bonds life

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Reference no: EM13980811

A $1,000 face value zero coupon bond is purchased for $700 five years prior to maturity. What is the effective annual return over the bond’s life?

(A) 7.4%

(B) 8.6%

(D) 495.0%

(E) 595.0%

Reference no: EM13980811

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