What are flows in circular flow model

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Q. Suppose GM bond is an 8% bond that will pay you $1,000 principal, plus an $80 interest payment one year from now (a total bond payment of $1,080). Current interest rate in economy is 12%. Using present value formula, about how much is bond worth now?

Q. Distinguish between resource market and product market in circular flow model. In what way are businesses and households both sellers and buyers in this model? What are flows in circular flow model?

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