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Consider the market for $200 bonds. If the price of the bond is $175, what is the interest rate on bonds
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Consider the market for $200 bonds. If the price of the bond is $175, what is the interest rate on bonds

User Rasmusvhansen
by
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1 Answer

3 votes

Answer:

14.3%

Step-by-step explanation:

Interest rate = (par value of the bond / price of the bond ) - 1

(200/175) - 1 = 0.143 = 14.3%

User Oxfist
by
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