Five years ago, you purchased a $1,000 corporate bond issued by General Electric. The interest rate for
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Five years ago, you purchased a $1,000 corporate bond issued by General Electric. The interest rate for the bond was 5 percent. Today comparable bonds are paying 7 percent. (Obj. 5)
a. What is the approximate dollar price for which you could sell your General Electric bond?
b. In your own words, describe why your bond decreased in value.
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Focus On Personal Finance
ISBN: 9780073382425
3rd Edition
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
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