Consider the Following Scenario When Answering the Next Five Questions

Consider the following scenario when answering the next five questions:
Your friend Carson is starting a new photography business that specializes in photographs of Central Park in New York City. Because his business is new and risky, he is unable to obtain a loan from the local bank. On June 21, 2013, you agree to pay a price of $4,000 for a bond from Carson. You will receive $5,000 in return on June 21, 2014.
-The interest rate of the bond mentioned in the scenario is equal to:

A) 80%.
B) 20%.
C) 25%.
D) 10%.
E) 5%.