Suppose the U.S. government issues a one-year Treasury bill with a face value of $5,000 and a $100 coupon payment. If the market interest rate is 9 percent, what is the market price of the bond based on its present discounted value? If bond prices rise by 4 percent, what must have happened to the market interest rate? Explain.

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The Answer of Suppose the U.S. government issues a one-year Treasury bill with a face value of $5,000 and a $100 coupon payment. If the market interest rate is 9 percent, what is the market price of the bond based on its present discounted value? If bond prices rise by 4 percent, what must have happened to the market interest rate? Explain.