Question: 8. Modifying problem #8, what If the expected inflation rate rose by 3%, so Investors now req of return of 13% Instead of 10%. What

8. Modifying problem #8, what If the expected inflation rate rose by 3%, so Investors now req of return of 13% Instead of 10%. What Is the new calculated value of a 10-year, $1,000 par va with a 10% coupon rate. Does the value of the bond Increase or decrease from the original va calcualted In probelm #8? (2 points) Years to Maturity (NPER): 10 NEW VALUE ANSWER Coupon rate (%): 10% Coupon Pmt ($): -$130 * negative $410.82 Par value (FV): -$1,000 * negative TYPE Increase or Decrease ANSWER Required Rate of Return, : 13% Present Value - PV: $410.82 Decrease Reminder: Bonds Prices above face value are premium bond Bonds Priced below face value are discount bonds

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