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Macroeconomics 9th Edition by David Colander
Edition 9ISBN: 978-0077501860Macroeconomics 9th Edition by David Colander
Edition 9ISBN: 978-0077501860 Exercise 3
Suppose the price of a one-year bond with a $100 face value that pays 10 percent interest is $98.
a.Are market interest rates likely to be above or below 10 percent Explain.
b.What is the bond's yield or return
c.If market interest rates fell, what would happen to the price of the bond
a.Are market interest rates likely to be above or below 10 percent Explain.
b.What is the bond's yield or return
c.If market interest rates fell, what would happen to the price of the bond
Explanation
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(a) Interest rates and the price of bond...
Macroeconomics 9th Edition by David Colander
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