A assume that a one year bond that has no interest coupon, Ask an Expert

Economics

(a) Assume that a one year bond that has no interest coupon payment with a maturity value (face value) of $1,000 sold for $900. Show the interest rate that this bond will pay when it matures.

(b) If the prices of similar bonds are selling next month for $950, show the interest rate that these bonds pay when they mature.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91837161

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