Seven Years Before It Matures the Value of a $1,000

question 288

Multiple Choice

Seven years before it matures the value of a $1,000 strip bond is $672. What is the semi-annually compounded nominal interest rate?

• A) 5.76%
• B) 5.84%
• C) 3.10%
• D) 24.40%
• E) 2.88%