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10. Nauru is a small island nation near Australia with a population of less than 10,000 people (about the size of UM-Dearborn). It ran up

10. Nauru is a small island nation near Australia with a population of less than 10,000 people (about the size of UM-Dearborn). It ran up its debt and was in a crisis. Nauru bonds trade for as low as five cents on the dollar. Suppose you buy a $100 face value bond for $5. What is the interest rate?

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