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You are considering investing in a zero-coupon bond that sells for $250. At maturity in 16 years it will be redeemed for

Posted: Thu Jul 21, 2022 8:56 pm
by answerhappygod
You are considering investing in a zero-coupon bond that sells for $250. At maturity in 16 years it will be redeemed for $1,000. What approximate annual rate of growth does this represent?

A. 8%
B. 9%
C. 12%
D. 25%