Multiple Choice
A few years ago, you bought a bond with no expiration and a fixed annual interest payment of $1,000 at a price of $10,000. If the interest rate in the economy is now 12.5 percent a year and you want to sell the bond, the maximum price that you can get for it is
A) $7,500.
B) $8,000.
C) $9,750.
D) $12,500.
Correct Answer:
Verified
Correct Answer:
Verified
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