Bond Price $1,000 $980 D S $960 $940 $920 $900 $880 $860 $840 $820 $800 $780...

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Bond Price $1,000 $980 D S $960 $940 $920 $900 $880 $860 $840 $820 $800 $780 $760 $740 $720 $700 $0 $50 $100 $150 $200 $250 $million $300 $350 $400 $450 The graph above shows the market for a one-year discount bond with a face value of $1,000. The government's budget deficit increases by $150 million and to finance that deficit it borrows in this market. This will result in the interest rate to change to: Choose the number closest to the answer. 19.05 percent 16.28 percent 13.64 percent 8.70 percent Bond Price $1,000 $980 D S $960 $940 $920 $900 $880 $860 $840 $820 $800 $780 $760 $740 $720 $700 $0 $50 $100 $150 $200 $250 $million $300 $350 $400 $450 The graph above shows the market for a one-year discount bond with a face value of $1,000. The government's budget deficit increases by $150 million and to finance that deficit it borrows in this market. This will result in the interest rate to change to: Choose the number closest to the answer. 19.05 percent 16.28 percent 13.64 percent 8.70 percent