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)   (Show Source): You can put this solution on YOUR website!
 
Hi,
(1 + I)^10 = 1000/463 = 2.1598
(1 + I)^10 = 2.1598
I = is .08 0r 8% interest

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