Problem
Consider a bond that promises to pay $100 in one year.
a. What is the interest rate on the bond if its price today is $75? $85? $95?
b. What is the relation between the price of the bond and the interest rate?
c. If the interest rate is 8%, what is the price of the bond today?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.