SOLUTION: Finding the interest rate for a given zero coupon bond (1 + I)^10 = 1000/463 Interest rate should equal 8% How do I get interest rate of 8%
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Question 845523
:
Finding the interest rate for a given zero coupon bond
(1 + I)^10 = 1000/463 Interest rate should equal 8%
How do I get interest rate of 8%
Answer by
ewatrrr(24785)
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Hi,
(1 + I)^10 = 1000/463 = 2.1598
(1 + I)^10 = 2.1598
I =
is .08 0r 8% interest
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