If you purchase for $1,000 a bond that pays $40 annually to the holder, and then "the" (that is, the market) interest rate rises to 8 percent, the price of that bond would now be:

Generally when interest payments increases, bond prices falls

Explanation:

If you purchase for $1,000 a bond that pays $40 annually to the holder, and then "the" (that is, the market) interest rate rises to 8 percent, the price of that bond would now be the present value of the future payments

Assume that the bond will last for 3 years to maturity

Interest payments at $40 = Total of $120 for 3 years

Interest payments at $80 = Total of $240 for 3 years

The additional interest payment from the growth will adjusted against the bond value of $1000 which will then be $1000 - (240 - 120). The bond price will fall to $880

Generally when interest payments increases, bond prices falls

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.

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