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The demand curve for a bond that has a maturity of 3 years, coupon rate 4% and a face value of 1,000,000 SEK is given
The demand curve for a bond that has a maturity of 3 years, coupon rate 4% and a face value of 1,000,000 SEK is given by: d = 2P + 2 800 000, and the supply curve of s = P + 100,000.
In equilibrium, at what market rate is the bond traded? A. i = 2.72%. B. i = 4.00%. C. i = 5.27%. D. i = 7.87%. E. i = 8.84%. F. None of the above.
(If its possible to calculate this via excel im happy to learn that)
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