If a bond pays 11.5 percent interest a year and a bank deposit pays 3.5 percent, the opportunity cost of holding the deposit is:

Name: If a bond pays 11.5 percent interest a year and a bank deposit pays 3.5 percent, the opportunity cost of holding the deposit is:
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The opportunity cost of holding the deposit is the difference between the bond's interest rate and the deposit's interest rate, which is 11.5% - 3.5% = 8%.

If a Bond Pays 11