Answered: 6. Suppose the price of a one-year bond…

6. Suppose the price of a one-year bond is $9,600. We know that the face value of the bond is $10,000, what is the interest rate on this bond? a) 4.17%; b) 1.41%; c) 1.04%; d) 4.17%,

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter17: Financial Markets

Section: Chapter Questions

Problem 21RQ: Why are bonds somewhat risky to buy, even though they make predetermined payments based on a fixed...

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Question

6. Suppose the price of a one-year bond is $9,600. We know that the face value of the bond is
$10,000, what is the interest rate on this bond?
a) 4.17%;
b) 1.41%;
c) 1.04%;
d) 4.17%,

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