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Suppose you are looking to buy a bond that promises to pay $ 6 5 0 , 0 0 0 on the date of maturityin

Suppose you are looking to buy a bond that promises to pay $650,000 on the date of maturityin one year. (23 points)a. If you bid for the bond and wind up paying a price of $640,000, solve for the interest rateon this bond. Round your answer to four decimal places.b. If on the next day, you bid for the bond and pay a price of $625,000, solve for the interestrate on the bond now. Round your answer to four decimal places.c. What is the relationship between the bond price and the interest rate on the bond?

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