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Economics

Answer the question on the basis of the following information for a bond having no expiration date: bond price = $1,000; bond fixed annual interest payment = $100; bond annual interest rate = 10percent.Refer to the given information. If the price of this bond falls by $200, the interest rate will:

A. rise by 2.5 percentage points.

B. rise by 5 percentage points.

C. fall by 2.5 percentage points.

D. fall by 5 percentage points.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91342551

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