# Economics

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Isabella buys a \$1,000 bond that matures in 10 years (that is, she lends \$1,000 to the U.S. Treasury for 10 years). The bond pays her \$50 every year for 10 years. When the bond matures at year 10, she will receive her \$1,000 back as well as her last interest payment of \$50.What is the annual interest rate (or yield) on Isabella's bond?

is it 50/1000= 5% yield

• Economics -

Yes. You're right.

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