#1 (permalink)  
Senior Member
Posts: 166

How do I find the effective rate of interest for this question?
Leroy is 25 and wants to start a retirement fund by purchasing a zero bond coupon from the US Treasury. He purchases one that has a $50,000 face value and will mature when he turns 65. If the simple interest is 8%, how much will Leroy have to pay now for the bond?

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