Answer Happy

Homework: Monetary Policy: Conventional and Unconventional Consider a bond without expiration date that makes a fixed Interest payment of $150 per year. Complete the following table by calculating the interest rate on the bond at different sale prices. (Hint: The effective interest rate on a bond is a ratio of the interest payment to the sale price of the bond times 100.) Price of Bond (Dollars) 1,200 1,000 750 600 Use the blue points (circle symbol) and the preceding table to plot the relationship between bond prices and interest rates on the following graph. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. rest Rate (Percent) 25.0 22.5 17.5 15.0 12.5 Interest Rate (Percent) 10.0 Relationship
Homework: Monetary Policy: Conventional and Unconventional Use the blue points (circle symbol) and the preceding table to plot the relationship between bond prices and interest rates on the following graph. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. Interest Rate (Percent) 25.0 22.5 20.0 17.5 150 12.5 10.0 7.5 5.0 2.5 0: 500 600 1000 1100 900 700 800 Price of Bond (Dollars) 1200 1300 Relationship The line showing the relationship between bond prices and interest rates has a relationship between bond prices and interest rates. slope; in other words, there is