What Happens to the Coupon Rate of a $100 Face

question 41

Multiple Choice

What happens to the coupon rate of a $100 face value bond that pays $7 coupon annually,if market interest rates change from 8 to 9%? The coupon rate:

• A) increases to 8%.
• B) increases to 9%.
• C) remains at 7%.
• D) increases to nearly 9%.

---

Definitions:

Ease Of Doing Business

A metric that measures the regulatory environment in a country to determine how conducive it is for starting and operating a local firm.

Convenience

The quality of being able to easily use or access a product or service, enhancing the overall customer experience.

Delivery Status

Refers to the current location and condition of a package in the process of being delivered.

FedEx Tracking

A service provided by FedEx that allows customers to monitor the status and location of their shipments in real time through a unique tracking number.