What happens to the coupon rate of a $1,000 face value bond that pays $80 annually in interest if market interest rates change from 9% to 10%

C) The coupon rate remains at 8%

Explanation:

Here are the options to this question :

A) The coupon rate decreases to 8%

B) The coupon rate increases to 10%

C) The coupon rate remains at 8%

D) The coupon rate remains at 9%

A bond is a debt instrument. Bond holders receive fixed coupon payments.

the coupon payments do not vary with market interest rate. It remains fixed based on the rate set on the bond indenture.

If the coupon payment is $80 and the face value of the bond is $1000, the coupon payment is 8%. the coupon rate remains fixed at 8%

i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

hope it ,

bioteacher101

answer; ///blank(1) longer; blank(2); lessi believe this is correct, plz check first; good luck';