Consider a 10 year zero coupon Treasury security selling for a price of $300, with a face value of $1,000 What is the before tax annual rate of return to an investor who buys and holds this security to maturity ...

The tenyear zero coupon bond has a price of 300 ...

Consider a 10-year zero-coupon Treasury security selling for a price of $300, with a face value of

Question:

Consider a 10-year zero-coupon Treasury security selling for a price of $300, with a of $1,000. What is the before-tax annual rate of return to an investor who buys and holds this security to maturity?
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...