Find the effective rate of the compound interest rate or investment. (round your answer to two decimal places.) a $50,000 zero-coupon bond maturing in 8 years and selling now for $43,035. %

Ans. Effective annual rate=1.8928%

Annual Compound semi-annually=1.8839%

Step-by-step explanation:

Hi, this is the formula to find the effective annual rate for this zero-coupon bond.

n= years to maturity

That is:

Means that the effective interest rate is 1.8928% effective annual

Now, let´s find the compound interest rate.

First, we have to turn this rate effective semi-annually

0.942% effective semi annual

To turn this into a semi-annual, compounded semi-annually, we just have to multiply by 2, so we get.

1.8839% compounded semi-annually

Best of luck

believe it or not anna is correct good job anna give me a fist bump there u go gal