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Use the bond market diagram on the right to do the following analysis. All bonds are discount bonds with a face value of $ 1
Use the bond market diagram on the right to do the
following analysis. All bonds are discount bonds
with a face value of $ and year to maturity.
a What is the equilibrium bond price?
b What is the equilibrium amount of funds
raised by issuing bonds?
c What is the equilibrium bond yield?
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