Answer:
The bond will yield a return of 2.92%
Explanation:
we solve for rate considering the formula for the future value of a lump sum:
Value 3,000
time = 10 years
future value 4,000
[tex]Principal \: (1+ r)^{time} = Amount[/tex]
[tex]3000 \: (1+ r)^{10} = 4,000[/tex]
[tex]r = \sqrt[10]{4,000/3,000} - 1[/tex]
r = 0.029186009
