Suppose that Aaron, the owner of Jack Brown's Burger Bar, wants to open a new restaurant....

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Suppose that Aaron, the owner of Jack Brown's Burger Bar, wants to open a new restaurant. To open the restaurant, he will need to raise $250,000. Suppose Aaron decides to sell one-year bonds with a $10,000 face value. If the price of the bond is $8000, the interest rate on the bond is %. Give your answer to two decimal places. Part 2 (1 point) Suppose that because of the popularity of Jack Brown's, Aaron decides to open a third restaurant and issues another round of $10,000 one-year bonds. If the interest rate on the bond falls to 20%, the price of these new bonds is $ Give your answer to two decimal places. Suppose that Aaron, the owner of Jack Brown's Burger Bar, wants to open a new restaurant. To open the restaurant, he will need to raise $250,000. Suppose Aaron decides to sell one-year bonds with a $10,000 face value. If the price of the bond is $8000, the interest rate on the bond is %. Give your answer to two decimal places. Part 2 (1 point) Suppose that because of the popularity of Jack Brown's, Aaron decides to open a third restaurant and issues another round of $10,000 one-year bonds. If the interest rate on the bond falls to 20%, the price of these new bonds is $ Give your answer to two decimal places.

Answer rating: 100% (QA)

To calculate the interest rate on the bond in Part 1 we can use the formula for the bon... View the full answer