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.
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.
Chapter15: Monetary Policy
Section: Chapter Questions
Problem 1WNG
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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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