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    Interest rate does the bond offer

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    A zero-coupon bond that will pay $1,000 in 12 years is selling today for $318.63. Calculate the bonds offered interest rate. (Do not round intermediate calculations. Round your answer to the nearest whole percent.)

    Interest rate __________ %

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    Solution Preview

    A zero-coupon bond that will pay $1,000 in 12 years is selling today for $318.63. What interest ...

    Solution Summary

    This solution discusses how to determine the interest rate of a given bond.

    $2.19

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