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You are considering investing in a zero-coupon bond that sells for Rs.500. Maturity in 8 years, it will be redeemed for Rs.1, 000. During the life of the bond NO interest coupons will be paid. Using the Rule of 72, what approximate annual rate of growth does this represent?

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You are considering investing in a zero-coupon bond that sells for Rs.500. Maturity in 8 years, it will be redeemed for Rs.1, 000. During the life of the bond NO interest coupons will be paid. Using the Rule of 72, what approximate annual rate of growth does this represent?






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