The bond offers an interest rate of 9%.
The interest rate is computed as shown below:
Future value = Present value ( 1 + r )n
$ 1,000 = $ 422.41 ( 1 + r )10
($ 1,000 / $ 422.41)1/10 - 1 = r
r = 9%.
An interest rate tells you how high the cost of borrowing is, or high the prices are for saving. So, if you are a borrower, the interest rate is the quantum you're charged for adopting a plutocrat, shown as a chance of the total quantum of the loan.
Using the interest rate formula, we get the interest rate, which is the chance of the top quantum, charged by the lender or bank to the borrower for the use of its means or plutocrat for a specific time period. The formula is Interest Rate( Simple Interest × 100)/( star × Time).
Learn more about interest rates here: https://brainly.com/question/25545513
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