What is the interest rate on the bond

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Reference no: EM13901369

Consider a bond that promises to pay $100 in one year.

a. What is the interest rate on the bond if its price today is $75? $85? $95?

b. What is the relation between the price of the bond and the interest rate?

c. If the interest rate is 8%, what is the price of the bond today?

Reference no: EM13901369

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