The market interest rate increases to 10. in the afternoon, Ask an Expert

Economics

Assume you purchased the bond at time 0 in the morning the bond is issued at market interest rate 4%. Then in the afternoon of the same day the market interest rate increases in a complete surprise. The market interest rate increases to 10%. IN the afternoon at what price would your bond sell in the secondary market?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9222739

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