Question
A discount bond promises a payment of $5,550 in three years. If the price of the bond today falls from $5,200 to $4,950, then the
A discount bond promises a payment of $5,550 in three years. If the price of the bond today falls from $5,200 to $4,950, then the yield on this bond rises from _____ to _____.
A. 2.2%; 3.9%
B. 2.2%; 5.9%
C. 2.8%; 5.9%
D. 2.8%; 3.9%
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The Economics Of Money Banking And Finance
Authors: Peter Howells, Keith Bain
2nd Edition
0273651080, 978-0273651086
