Question: A ten-year discount bond is issued with a face value of $1,000. If interest rates increase shortly after the bond is issued: 1. what happens

A ten-year discount bond is issued with a face value of $1,000. If interest rates increase shortly after the bond is issued:

1. what happens price of the bond [ Select ] (increases/decreases/does not change)

2. and the yield of the bond [ Select ] . (increases/decreases/does not change) A ten-year discount bond is issued with a face value of $1,000.

Question 1 0.3 pts a A ten-year discount bond is issued with a face value of $1,000. If interest rates increase shortly after the bond is issued, what happens price of the bond [Select ] and the yield of the bond [ Select ]

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