Answered: 5. How much is the interest rate on a…

5. How much is the interest rate on a bond that has a face value of $1,000, a selling price of $800, and that pays $80 interest?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter17: Financial Markets

Section: Chapter Questions

Problem 21RQ: Why are bonds somewhat risky to buy, even though they make predetermined payments based on a fixed...

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5. How much is the interest rate on a bond that
has a face value of $1,000, a selling price of $800,
and that pays $80 interest?

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