Question: If you pay $32,000 for a 5-year zero coupon bond with a face value of $40,000, what is your annual compound rate of return? Refer

If you pay $32,000 for a 5-year zero coupon bond with a face value of $40,000, what is your annual compound rate of return?
Refer to zero coupon bonds. A zero coupon bond is a bond that is sold now at a discount and will pay its face value at some time in the future when it matures no interest payments are made.

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