Suppose you are looking to buy a bond that promises to pay $$650,000$ on the date of maturity

in one year.

a$.$ If you bid for the bond and wind up paying a price of $$640,000,$ solve for the interest rate

on 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 interest

rate 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?