Suppose the U.S. Treasury offers to sell you a bond for 3,000. No payments will be made until the bond matures 10 years from now, at which time it will be redeemed for5,000. What annual interest rate would you earn if you bought this bond at the offer price? (Assume annual compounding)
1) 3.82
2) 5.24
3) 4.72
4) 4.25