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04-06-2021
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Consider the market for $200 bonds. If the price of the bond is $175, what is the interest rate on bonds

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ewomazinoade ewomazinoade

06-06-2021

Answer:

14.3%

Explanation:

Interest rate = (par value of the bond / price of the bond ) - 1

(200/175) - 1 = 0.143 = 14.3%

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