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| rev | Admin | (Created page with "'''Solution: D''' The cost to purchase the bond at the end of year 3 is 2000 x (1.03)<sup>-2</sup> = 1,885.19 . Subtracting this cost from 2260.19 we get 375, the amount of interest paid which is 3.75% of 10000. Thus the interest rate is 3.75%. {{soacopyright | 2023 }}") | Nov 19'23 at 15:08 | +271 |