A bond that pays a yearly interest rate of $100 is for sale. The interest rate was 10 percent and now is 5 percent. The price of the bond was

Name: A bond that pays a yearly interest rate of $100 is for sale. The interest rate was 10 percent and now is 5 percent. The price of the bond was
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Question

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When the interest rate was 10%, the bond's price was $1000 ($100 / 0.10). Now that the interest rate is 5%, the bond's price is $2000 ($100 / 0.05).

A Bond That Pays a Yearly Interest Rate of $100