Vijay purchased a Government of Nova Scotia bond for $1,050. The bond will pay $35 interest to Vijay at the end of every six months until it matures in seven years. On the maturity date the bond will pay back its $1,000 face value (as well as the interest payment due on that date.) What semi-annually compounded rate of return will Vijay earn during the seven years?

Question

Quizplus · Accepted Answer

The Answer of Vijay purchased a Government of Nova Scotia bond for $1,050. The bond will pay $35 interest to Vijay at the end of every six months until it matures in seven years. On the maturity date the bond will pay back its $1,000 face value (as well as the interest payment due on that date.) What semi-annually compounded rate of return will Vijay earn during the seven years?

Vijay Purchased a Government of Nova Scotia Bond for $1,050