Bob bought a bond last year for $10,000 that promises to pay him $800 per year. This year investors can buy a bond for $10,000 that promises to pay $500 per year.

Macroeconomics
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ISBN:9781337617390
Author:Roger A. Arnold
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Chapter15: Monetary Policy
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Bob bought a bond last year for $10,000 that promises to pay him $800 per year. This year investors can buy a bond for $10,000 that promises to pay $500 per year. If Bob wants to sell his bond what is the price likely to be?

 

a. $10,000

 

b. $5000

 

c. $16,000

 

d. None of the available answers are correct.

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