Question: You pay $8000 for a municpal bound. When it matures after 20 years, you receive $12,500. Compute the annual return. Give your answer as


You pay $8000 for a municpal bound. When it matures after 20 

You pay $8000 for a municpal bound. When it matures after 20 years, you receive $12,500. Compute the annual return. Give your answer as a percent but do NOT include the % sign.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To compute the annual return for the municipal bond we can use the formula A... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!