Question: Suppose a bond with no expiration date has a face value of $10,000 and annually pays a fixed amount of interest of $850 a. In
Suppose a bond with no expiration date has a face value of $10,000 and annually pays a fixed amount of interest of $850 a. In the table provided below, calculate and enter either the interest rate that the bond would yield to a bond buyer at each of the bond prices listed below or the bond price at each of the interest yields shown Instructions: Enter your answers in the gray-shaded cells. For bond prices, round your answers to the nearest hundred dollars. For interest yields, round your answers to 2 decimal places. Bond Price 8,500 Interest Yield, % s 8.95% s 10,500 11,500 $ 6.30% b. What generalization can be drawn from the completed table? Bond prices and interest rates are not related O Bond prices and interest rates are inversely related. Bond prices and interest rates are directly related There is insufficient data to make a generalization
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