The Treasury Department sells a zero-coupon bond that will mature in two years.The bond has a face value of $10,000,and sold at auction for $9,400.What is the annual return for an investor buying the bond?

Name: The Treasury Department sells a zero-coupon bond that will mature in two years.The bond has a face value of $10,000,and sold at auction for $9,400.What is the annual return for an investor buying the bond?
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Question

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n = 2,r = YTM = ?,PV = -$9400,PMT = 0,FV = $10,000
r = 3.14%

The Treasury Department Sells a Zero-Coupon Bond That Will Mature