Question: Construct some simple examples to illustrate your answers to the following: a. If interest rates rise, do bond prices rise or fall? b. If the

 Construct some simple examples to illustrate your answers to the following:

Construct some simple examples to illustrate your answers to the following: a. If interest rates rise, do bond prices rise or fall? b. If the bond yield is greater than the coupon, is the price of the bond greater or less than 100 ? c. If the price of a bond exceeds 100 , is the yield greater or less than the coupon? d. Do high-coupon bonds sell at higher or lower prices than low-coupon bonds? e. If interest rates change, does the price of high-coupon bonds change proportionately more than that of low-coupon bonds

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