Answer the question on the basis of the following information for a bond having no expiration date: bond price = $1,000; bond fixed annual interest payment = $100; bond annual interest rate = 10 percent.
refer to the given information. if the price of this bond increases to $1,250, the interest rate will:
a) fall to 9 percent.
b) fall to 8 percent.
c) rise to 11 percent.
d) rise to 12 percent.
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