The U.S. Treasury offers to sell you a bond for $613.81. No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for $1,000. What interest rate would you earn if you bought this bond at the offer price?
(Points: 4)
a. 5.91%
b. 6.71%
c. 7.10%
d. 5.59%
