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Suppose the price of a one-year bond is $9,600. We know that the face value of the bond is$10,000, what is the interest rate on this bond?

Suppose the price of a one-year bond is $9,600. We know that the face value of the bond is$10,000, what is the interest rate on this bond?  If the central bank reduces the money supply so that the new interest rate is now 7.2%, what is the new price of the bond?

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