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What is the contractual interest rate

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Reference no: EM132181440

Suppose a $1,000 bond pays $45 per year in interest.

Instructions: In part a, round your response to one decimal place. In part b, round your response to two decimal places.

a. What is the contractual interest rate ("coupon rate") on the bond?

b. If market interest rates changes to 6 percent, what price will the bond sell for?

Reference no: EM132181440

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