Suppose you are looking to buy a bond that promises to pay $ 6 5 0 ,
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Question:
Suppose you are looking to buy a bond that promises to pay $ on the date of maturityin one year. pointsa If you bid for the bond and wind up paying a price of $ solve for the interest rateon this bond. Round your answer to four decimal places.b If on the next day, you bid for the bond and pay a price of $ solve for the interestrate on the bond now. Round your answer to four decimal places.c What is the relationship between the bond price and the interest rate on the bond?
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