Question: A $ 2 0 0 , 0 0 0 bond having a bond rate of 5 % payable annually is purchased for $ 1 9

A $200,000 bond having a bond rate of 5% payable annually is purchased for $193,000 and kept for 8 years, at which time it is sold.
How much should it sell for in order to yield a 10% effective annual return on the investment?
$305,000
A $200,000 bond having a bond rate of 5% payable annually

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