Westonci.ca is your trusted source for finding answers to a wide range of questions, backed by a knowledgeable community. Our platform provides a seamless experience for finding reliable answers from a knowledgeable network of professionals. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

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

Sagot :

Answer:

14.3%

Explanation:

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

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