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You pay $10,000 for a one-year bond with an original value of $10,000 and a single fixed payment of $800 at the end of the
You pay $10,000 for a one-year bond with an original value of $10,000 and a single fixed payment of $800 at the end of the year. You hold the bond until the year is up, but during that time, the market price of the bond falls to $8,000. The interest rate on your investment is
A.80 percent.
B.10 percent.
C.100 percent.
D.higher than interest rates on similar bonds at the end of the year.
E.8 percent.
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