Suppose that interest rates are 6 percent in the economy and a safe bond promises to pay

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Suppose that interest rates are 6 percent in the economy and a safe bond promises to pay $3 per year in interest forever. What do you think the price of the bond will be? Why?

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Economics Principles and Policy

ISBN: 978-0538453653

12th edition

Authors: William J. Baumol, Alan S. Blinder

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Question Posted: Apr 12, 2016 07:13 AM

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Suppose that interest rates are 6 percent in the economy and a safe bond promises to pay

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Hence for the final analysis we can say th...View the full answer

Economics Principles and Policy

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