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    Macroeconomics Principles Study Set 1
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    Exam 11: Saving, Investment, and the Financial System
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    How Much Is a Bond Worth If It Pays $55
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How Much Is a Bond Worth If It Pays $55

Question 74

Question 74

Multiple Choice

How much is a bond worth if it pays $55 per year in interest forever and the market interest rate is 8%?


A) $440
B) $687.50
C) $787.60
D) $1,250

Correct Answer:

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