Question
Assume that you inherit a bond with a face value of $10,000, an annual return rate of 5%, and a maturity date of 2050. -
Assume that you inherit a bond with a face value of $10,000, an annual return rate of 5%, and a maturity date of 2050. - What is the annual revenue of this bond? Blank 1. Fill in the blank, read surrounding text. - What would the bond selling price be if the current market interest rate was 1%? Blank 2. Fill in the blank, read surrounding text. - What would the bond selling price be if the current market interest rate was 10%? Blank 3. Fill in the blank, read surrounding text. - If the current market interest rate is under 1%, you should: A. Hold the bond; B. Sell the bond; C. Buy more bonds (Enter either A, B or C) Blank 4. Fill in the blank, read surrounding text.
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