Irina just recently sold a $2,000 par value government of Canada zero-coupon bond for $1,100. If the bond matures in 4 years, what is the interest rate received for the asset by Irina? O A 12% O B. 18% OC. 10% OD 16%

Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: The Basic Tools Of Finance
Section: Chapter Questions
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Irina just recently sold a $2,000 par value government of Canada zero-coupon bond for $1,100, If the bond matures in 4 years, what is the
interest rate received for the asset by Irina?
O A 12%
O B. 18%
OC. 10%
OD 16%
Transcribed Image Text:Irina just recently sold a $2,000 par value government of Canada zero-coupon bond for $1,100, If the bond matures in 4 years, what is the interest rate received for the asset by Irina? O A 12% O B. 18% OC. 10% OD 16%
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