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Consider a market for discount bonds. The discount bond pays $550 in exactly one year. If today's price for the bond drops from P =

Consider a market for discount bonds. The discount bond pays $550 in exactly one year. If today's price for the bond drops from P = 520 to P = 500, then the yield an investor will earn on this bond changes from ____ to ____

6.4%; 11.1%

6.4%; 10%

5.8%; 10%

5.8%; 11.1%

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