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Business, 20.09.2020 16:01 jenm345

Suppose a bond with no expiration date has a face value of $10,000 and annually pays a fixed amount of interest of $950. In the table provided below, calculate and enter either the interest rate that the bond would yield to a bond buyer at each of the bond prices listed below or the bond price at each of the interest yields shown. Instructions:
Enter your responses in the blank cells.
For bond prices, round your answers to the nearest hundred dollars.
For interest yields, round your answers to 2 decimal places.
Bond Price Interest Yield %
$8,000
10.6%
$10,000
$11,000
7.3%
What generalization can be drawn from the completed table?
A. Bond prices and interest rates are not related
B. There is insufficient data to make a generalization
C. Bond prices and interest rates are inversely related
D. Bond prices and interest rates are directly related.

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