In 1990, you purchased a 30-year, $1,000 corporate bond issued by AMR, the parent company of American
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In 1990, you purchased a 30-year, $1,000 corporate bond issued by AMR, the parent company of American Airlines. At the time, the interest rate for the bond was 9 percent. Today, comparable bonds are paying 7 percent. (Obj. 5)
a. What is the approximate dollar price for which you could sell your AMR bond?
b. In your own words, describe why your bond increased in value.
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Related Book For
Focus On Personal Finance
ISBN: 9780073382425
3rd Edition
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
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