Problem
In 2008, when the U.S. automobile industry was struggling, the price of Ford Motor Company bonds rose. In this question, you need to calculate how the price increase also affects the interest rate.
a. What is the interest rate on a one-year Ford bond with a face value of $5,000 and a price of $4,750?
b. What is the new interest rate on a one-year Ford bond with a face value of $1,000 and a price of $4,950?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.