Answer the question based on the following information for a bond having no expiration date: bond price = $1,000; bond fixed annual interest payment = $100; bond annual interest rate = 10 percent. If the price of this bond falls by $200, the %3D interest rate will Multiple Choice rise by 5 percentage points. fall by 2.5 percentage points. fall by 5 percentage points. rise by 2.5 percentage points.

Answer the question based on the following information for a bond having no expiration date: bond price = $1,000; bond fixed annual interest payment = $100; bond annual interest rate = 10 percent. If the price of this bond falls by $200, the %3D interest rate will Multiple Choice rise by 5 percentage points. fall by 2.5 percentage points. fall by 5 percentage points. rise by 2.5 percentage points.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter34: The Influence Of Monetary And Fiscal Policy On Aggregate Demand

Section: Chapter Questions

Problem 11PA

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