If security is currently worth $5,600 will be worth $7,054.39 three years in the future, what is the implied interest rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made? a. 6.40% b. 1.26% c. 8.00% d. 0.42%

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 18P
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Please given correct answer general Accounting

If security is currently worth $5,600 will be worth
$7,054.39 three years in the future, what is the
implied interest rate the investor will earn on the
security-assuming that no additional deposits or
withdrawals are made?
a. 6.40%
b. 1.26%
c. 8.00%
d. 0.42%
Transcribed Image Text:If security is currently worth $5,600 will be worth $7,054.39 three years in the future, what is the implied interest rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made? a. 6.40% b. 1.26% c. 8.00% d. 0.42%
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