No interest coupon payment with maturity value

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Reference no: EM131094478

(a) Assume that a one year bond that has no interest coupon payment with a maturity value (face value) of $1,000 sold for $900. Show the interest rate that this bond will pay when it matures.

(b) If the prices of similar bonds are selling next month for $950, show the interest rate that these bonds pay when they mature.

Reference no: EM131094478

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