(Answered) Pricing a bonda bond promises to pay 120nbspnext year and

Economics

Pricing a Bond.

A bond promises to pay ?$120 next year and the interest rate is 6 percent per year.

a. What will the price of the bond? be? ?(Enter your response rounded to the nearest penny?.)

b. What will the new price of the bond be if the interest rate rises to 8 ?percent? (Enter your response rounded to the nearest penny?.)

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