Last month, corporations supplied $250 billion in one-year discount bonds to investors at an average market rate of 12%. This month, an additional $50 billion in one-year discount bonds became available, and market rates increased to 13%. Assuming that the demand curve remained constant, what is the slope of the equation.

Last month, corporations supplied $250 billion in one-year discount bonds to investors at an average market rate of 12%. This month, an additional $50 billion in one-year discount bonds became available, and market rates increased to 13%. Assuming that the demand curve remained constant, what is the slope of the equation.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter11: Determining The Cost Of Capital

Section: Chapter Questions

Problem 16P

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