SOLUTION: suppose you buy a 5 year treasury bond face value 2,000 for a purchase of 1800. Assuming simple interest, what is the effective annual interest rate that you will earn when the bon
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Question 1102781: suppose you buy a 5 year treasury bond face value 2,000 for a purchase of 1800. Assuming simple interest, what is the effective annual interest rate that you will earn when the bond matures? Answer by jorel1380(3719) (Show Source):
You can put this solution on YOUR website! 2000-1800=200
200/5=40
40/1800=0.02222222222222222222222222222222 or 2.22% effective annual yield
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