What will the price of the bond be


Problem

Pricing a Bond. If a bond promises to pay $110 next year and the interest rate is 5 percent per year:

a. What will the price of the bond be?

b. What will the new price of the bond be if the interest rate falls to 3 percent?

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.

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Microeconomics: What will the price of the bond be
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