Multiple Choice
When the interest rate in the economy was 10 percent, the price of a bond with no expiration date that paid a fixed annual interest of $500 was $5,000. If the interest rate in the economy falls to 6 percent, the price of this bond will be about
A) $4,700.
B) $5,030.
C) $7,128.
D) $8,333.
Correct Answer:
Verified
Correct Answer:
Verified
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