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.© BrainMass Inc. brainmass.com December 20, 2018, 6:04 am ad1c9bdddf
The bond is Zero-coupon bond. I assume the face value of the bond is $1000. You can use 'RATE' function in excel ...
The solution computes zero coupon bond interest rate offered by Treasury Dept.