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Business, 26.02.2020 03:54 larrbear64

When the interest rate in the economy was 10 percent, the price of a bond with no expiration date that paid a fixed annual interest of $500 was $5,000. If the interest rate in the economy falls to 6 percent, the price of this bond will be about

a. $4,700.
b. $5,030.
c. $7128
d. $8,333.

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