Question: 4 ) A 8 - year bond is issued with a face value of INR 5 0 0 , paying interest of INR 5 0

4) A 8-year bond is issued with a face value of INR 500, paying interest of INR 50 a year. If interest rates increase shortly after the bond is issued, what happens to the bonds (1.5 marks)
a) Coupon rate?
b) Price?
c) Yield to maturity?

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