What is the market interest rate if the price of the bond
Problem
A new one-year bond with a face value of $1000 was issued that pays a coupon rate of 6%. What is the market interest rate if the price of the bond?
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What is the case against active monetary policy? What is the case against active fiscal policy? Explain.
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What action would the speculators likely take in anticipation of that event? Would this action make a devaluation more or less likely?
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