Question: Problems 6366 involve zero-coupon bonds. A zero-coupon bond is a bond that is sold now at a discount and will pay its face value at

Problems 63–66 involve zero-coupon bonds. A zero-coupon bond is a bond that is sold now at a discount and will pay its face value at the time when it matures; no interest payments are made.

If Hakim pays $15,334.65 for a $25,000 face-value, zero-coupon bond that matures in 8 years, what is his annual rate of return?

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