What is the implied interest rate

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Reference no: EM131233919

The price of a bond that offers a safe promise of $100 in 1 year is $95.

What is the implied interest rate? If the bond's interest rate suddenly jumped up by 150 basis points, what would the bond price be?

How much would an investor gain/lose if she held the bond while the interest rate jumped up by these 150 basis points?

Reference no: EM131233919

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