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Difficulty: Medium
Category: Mental Math & Estimation
Practice quant interview questions from top firms including Jane Street, Citadel, Two Sigma, DE Shaw, and other leading quantitative finance companies.
Topics: compounding, rule-of-72, taylor-series, estimation, growth-rates
You are evaluating a high-yield bond with a guaranteed annual return of 7%. You plan to hold this bond for 10 years. To assess the total capital multiplier quickly during a meeting, you need to estimate the compound growth factor. Estimate the value of: $$ 1.07^{10} $$ (Choose the closest value).
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