Suppose Matt's New Cars issues and sells a one-year discount bond for $9,259 and repays $10,000 at maturity.The interest rate on this bond would be
A) 2.6%.
B) 7.41%.
C) 8%.
D) 10%.

Question

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The Answer of Suppose Matt's New Cars issues and sells a one-year discount bond for $9,259 and repays $10,000 at maturity.The interest rate on this bond would be
A) 2.6%.
B) 7.41%.
C) 8%.
D) 10%.

Suppose Matt's New Cars Issues and Sells a One-Year Discount