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You are considering investing in a zero-coupon bond that sells for $250.

At maturity in16 years it will be redeemed for $1,000. What approximate annual rate of growth does this represent?

 

1)8 percent.

 

2)9 percent.

 

3)12 percent.

 

4)25 percent.

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Question added by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
Date Posted: 2015/03/22
Wasi Rahman Sheikh
by Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG

Option3) is correct answer <<<<<<<<<<<<<<<<<

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

2)9 percent is the answer.

                      

Deleted user
by Deleted user

approximate annual rate of growth is9%

Alex Al Yazouri
by Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

2)>>>>>>>>>>>>>>>9 percent.

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

2)9 percent. approx.

it will double in8 years .72/8=9%. Then again it will double in next8 years. So it will be4 times its original value in16 years.

Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

>>>>>>>> The answer will be9 percent.

 

Deleted user
by Deleted user

AGreed to experts

Thank you