a. If a zero-coupon bond with a face value of $1,000 payable in 1 year sells for

Question:

a. If a zero-coupon bond with a face value of

$1,000 payable in 1 year sells for $925, what is the interest rate?

b. If another bond with the same face value and maturity sells for $900, what is the interest rate on this bond?

c. Which bond, that discussed in question a or question

b, would you rather invest in?

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Modern Principles Of Economics

ISBN: 9781429239974

2nd Edition

Authors: Tyler Cowen, Alex Tabarrok

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Question Posted: Jun 28, 2024 01:00 AM

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a. If a zero-coupon bond with a face value of $1,000 payable in 1 year sells for

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Modern Principles Of Economics

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