If the price of a U.S. government bond is $50 and the owner of the bond is

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If the price of a U.S. government bond is $50 and the owner of the bond is entitled to $2.50 income each year, then the interest rate on the bond is ____.

A. 0.2 percent

B. 5 percent

C. 10 percent

D. 20 percent

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Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

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Question Posted: May 21, 2018 06:20 AM

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If the price of a U.S. government bond is $50 and the owner of the bond is

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Answer B The interest ...View the full answer

Foundations of Macroeconomics

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