What happens to the coupon rate of a bond that pays $80 annually in interest if interest rates change from 9 percent to 10 percent?

Name: What happens to the coupon rate of a bond that pays $80 annually in interest if interest rates change from 9 percent to 10 percent?
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The coupon rate is determined at issuance and remains fixed. Since the bond pays $80 annually and the face value is $1,000, the coupon rate is 8% ($80/$1,000). Changes in market interest rates do not affect the coupon rate.

What Happens to the Coupon Rate of a Bond That