Question: You purchase a 3 0 - year, zero - coupon bond for a price of $ 4 0 . The bond will pay back $

You purchase a 30-year, zero-coupon bond for a price of $40. The bond will pay back $100 after 30 years and make no interim payments. The annual compounded retum (geometric average return) on this investment is:
A.3.1%
B.2.64%
C.2.95%
D.3.72%
 You purchase a 30-year, zero-coupon bond for a price of $40.

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