Multiple Choice
A bond with no expiration has an original price of $10,000 and a fixed annual interest payment of $1,000.If the price of this bond increases by $2,500, the interest rate in effect will
A) decrease by 1 percentage point.
B) decrease by 2 percentage points.
C) increase by 1 percentage point.
D) increase by 2 percentage points.
Correct Answer:
Verified
Correct Answer:
Verified
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