Final answer:
The rate for a one-year loan beginning in one year is closest to 12%.
Step-by-step explanation:
The rate for a one-year loan beginning in one year is closest to 12%.
To calculate the rate for a one-year loan beginning in one year, we can use the concept of yield on a bond. In this case, we have a one-year zero-coupon bond that yields 4.0. This means that the bond will be sold for less than its face value of $1,000. The rate can be calculated by finding the percentage increase between the face value and the selling price of the bond.
Using the formula: Yield = (Selling Price - Face Value) / Face Value * 100%
Substituting the values: Yield = (1080 - 1000) / 1000 * 100% = 8%
To find the rate for a one-year loan beginning in one year, we subtract the yield from 100%. Since the yield is 8%, the rate for the loan is 100% - 8% = 92%.