If a United States saving bond can be purchased for $14.60 and has a maturity value at the end of 25 years of $100,what is the annual rate of return on the bond?
A) 6 percent
B) 7 percent
C) 8 percent
D) 9 percent
E) 10 percent

Question

Quizplus · Accepted Answer

i = 11ea7fdb_fc25_eb08_a768_cf48b3d78605_TB2902_00 - 1
i = 11ea7fdb_fc26_1219_a768_8b930507caae_TB2902_00 - 1 = 8%
Using a financial calculator:
N = 25, PV = -14.60, PMT = 0, FV = 100, cpt I/Y = 8%

If a United States Saving Bond Can Be Purchased for $14.60