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A bond with no expiration has an original price of $10,000 and a fixed annual interest payment of $1000. If the price of this bond
A bond with no expiration has an original price of $10,000 and a fixed annual interest payment of $1000. If the price of this bond increases by $1100, the interest rate in effect will:
Question 57 options:
a)
decrease by 1 percentage point.
b)
decrease by 2 percentage points.
c)
increase by 1 percentage point.
d)
increase by 2 percentage points.
e)
None of the above
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