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Zero Coupon Bond interest Rate

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The Treasury department is offering to sell me a bond for $613.81. I can not get any money from the bond for 10 years. What interest rate would I earn if i chose to buy the bond at the price they are offering.

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The solution computes zero coupon bond interest rate offered by Treasury Dept.

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The bond is Zero-coupon bond. I assume the face value of the bond is $1000. You can use 'RATE' function in excel ...

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