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Solve the following question by using the excel sheet on your computer

If a bond pays $70 in one year and $140 in two years, its present value is $200. Find the interest rate which equates the price of the bonds with the future values discounted. Use in your experiment 10 interest rates (hint: start your calculation from interest rate =1%). Based on your results what is the relationship between the interest rate and the price of the bond?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92807393

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