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Consider a one period (discount) bond that pays $100 at the end of the year. ...
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Consider a one period (discount) bond that pays $100 at the end of the year.
If the current interest rate is 4 percent per-annum, the current price of the bond is ___________. On the other hand, if the current interest rate rises to 6 percent per-annum, the price of the bond _________.
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