A bond with no expiration has an original price of $10,000 and a ﬁxed annual interest payment of $1,000. If the price of this bond increases by $2,500, the interest rate in effect will
A) decrease by 1 percentage point.
B) decrease by 2 percentage points.
C) increase by 1 percentage point.
D) increase by 2 percentage points.

Question

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The Answer of A bond with no expiration has an original price of $10,000 and a ﬁxed annual interest payment of $1,000. If the price of this bond increases by $2,500, the interest rate in effect will
A) decrease by 1 percentage point.
B) decrease by 2 percentage points.
C) increase by 1 percentage point.
D) increase by 2 percentage points.

A Bond with No Expiration Has an Original Price of $10,000