If the equilibrium price in the bond market for a 1 year discount bond is 9400,...
If the equilibrium price in the bond market for a 1 year discount bond is 9400, then the equilibrium interest rate in the loanable funds market must be
a 9.4%
b.4%
c 6%
d. 6.4%
I need help with finding the percentage on this problem. Please explain. Thank you
Homework Answers
Equilibrium price in the bond market for 1 year discount bond= 9400.
Assume,Face value = 10,000
Interest rate = (10,000 - 9400 / 9400)100 = 6.4 %.
Hence, option (D) is correct.
Add Answer to:
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