Problemtaking a bond with no fixed redemption date paying, Ask an Expert

Economics

Problem

Taking a bond with no fixed redemption date paying interest at the rate of 5 per cent pa and a nominal price of .C100-.

(a) What is the current rate of interest if the bond has a current market value of £110?

(b) What would be your answer if the cur-rent market price of the bond was £90?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92761838

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