What is the contractual interest rate

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Reference no: EM132586725

Suppose a $1,000 bond pays $30 per year in interest.

Instructions:

In part a, round 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 rate changes to 4 percent, what price will the bond sell for?

Reference no: EM132586725

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