The corner grocer has a 7-year, 6 percent annual coupon bond outstanding with a $1,000 par value. the bond has a yield to maturity of 5.5 percent. which one of the following statements is correct if the market yield suddenly increases to 7 percent? a. the bond price will increase by 5.29 percent. b. the bond price will increase by $57.14. c. the bond price will decrease by $53.62. d. the bond price will decrease by 8.36 percent. e. the bond price will decrease by 8 percent.

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

The answer is a i think