If the dollar price of a bond is $7,500 and the face value of the bond is $8,000,the interest rate is equal to

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The interest rate of a bond is calculated as the annual coupon payment divided by the face value of the bond. In this case, we don't know the annual coupon payment, but we know the dollar price of the bond and the face value of the bond. The dollar price of the bond is less than the face value, so the bond is selling at a discount. To calculate the annual coupon payment, we need to find the difference between the face value and the dollar price, which is $8,000 - $7,500 = $500. Then we divide the annual coupon payment by the face value of the bond, which is $500/$8,000 = 0.0625 or 6.25%. Therefore, the answer is B.

If the Dollar Price of a Bond Is $7,500 and the Face