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question 91

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Answer the questions below:
(A)Suppose the current interest rate is 12 percent and a bond with a face value of $500 that pays a coupon rate of 15 percent is selling for $450. Calculate the yield on this bond.
(B)What will happen to bond prices?


Definitions:

Body Dissatisfaction

A negative subjective evaluation of one's body weight or shape.

Troubled Marriages

Marital relationships that are characterized by persistent conflicts, dissatisfaction, and/or dysfunction.

Depressive Disorder

A category of mood disorders characterized by persistent feelings of sadness, emptiness, or hopelessness.

Untroubled Marriages

Marriages that experience minimal conflict and are characterized by mutual satisfaction and understanding between partners.

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