In 2008, when the U.S. automobile industry was struggling, the price of Ford Motor Company bonds rose.

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In 2008, when the U.S. automobile industry was struggling, the price of Ford Motor Company bonds rose. In this question, you need to calculate how the price increase also affected the interest rate.

a. What was the interest rate on a one-

year Ford bond with a face value of $5,000 and a price of $4,750?

b. What was the new interest rate on a one-

year Ford bond with a face value of $5,000 and a price of $4,950?

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Principles Of Economics

ISBN: 9780393623819

2nd Edition

Authors: Lee Coppock, Dirk Mateer

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Question Posted: Nov 13, 2024 07:02 AM

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In 2008, when the U.S. automobile industry was struggling, the price of Ford Motor Company bonds rose.

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Principles Of Economics

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