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Suppose that bonds sold by Firm B are one-year zero-coupon bonds and has a face value of $100 and that the market interest rate is
Suppose that bonds sold by Firm B are one-year zero-coupon bonds and has a face value of $100 and that the market interest rate is 3% annually. How many bonds does Firm B need to sell to finance a $30B expansion? Assume that bonds are priced at the market interest rate. c (20 points)
Suppose that Bank A purchases $30B in bonds from firm B. Show Bank A's new T-Account.
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