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Consider two bonds. Each has a face value of $100 and matures in one year. One has a zero coupon payment, and the other pays $10 per year.
A. Explain how the two bonds differ
B. Calculate the price of each bond if the interest rate is 3%
C. Which bond has a higher price? And why
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If Country A had four times the initial level of real GDP per capita of Country B and it was growing at 1.4 percent a year, while real GDP was growing at 2.3 percent in Country B,
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