9. Suppose the price of a $100,000 bond falls from $98,000 to $97,000. a. What is the interest rate on a one-year $100,000 bond that sells for $98,000? b. What is the interest rate on a one-year $100,000 bond that sells for $97,000?

9. Suppose the price of a $100,000 bond falls from $98,000 to $97,000. a. What is the interest rate on a one-year $100,000 bond that sells for $98,000? b. What is the interest rate on a one-year $100,000 bond that sells for $97,000?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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9. Suppose the price of a $100,000 bond falls from $98,000 to $97,000.
What is the interest rate on a one-year $100,000 bond that sells for $98,000?
b. What is the interest rate on a one-year $100,000 bond that sells for $97,000?
a.
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