What interest rate is implicit in a 1000 par value zerocoupo

What interest rate is implicit in a $1,000 par value zero-coupon bond that matures in 4 years if the current price is $590. Please specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3 percent as 0.123).

Solution

Implicit rate of interest = (1000/590)^1/4 - 1

implicit rate of interest = 14.10 %