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) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi,

(1 + I)^10 = 1000/463 = 2.1598

(1 + I)^10 = 2.1598

 I = root%2810%2C2.1598%29++-+1 is .08  0r   8% interest