In March 2012, Daniela Motor Financing (DMF), offered some securities for sale to the public. Under the terms of the deal, DMF promised to repay the owner of one of these securities $500 in March 2047, but investors would receive nothing until then. Investors paid DMF $250 for each of these securities; so they gave up $250 in March 2012, for the promise of a $500 payment 35 years later.


Required:

Assuming that you purchased the bond for $250, what rate of return would you earn if you held the bond for 35 years until it matured with a value $500?