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Business, 17.03.2020 19:13 jmcd10

Answer the next question on the basis of the following information for a bond having no expiration date: bond price = $1,000; bond fixed annual interest payment = $100; bond annual interest rate = 10%. If the price of this bond falls by $200, the interest rate will .a. fall by 2.5 percentage points.
b. rise by 5 percentage points.
c. fall by 5 percentage points.
d. rise by 2.5 percentage points.

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