FALLS/RISES FOR BOTH SELECTIONS

Assuming that the current interest rate is 2 percent, compute the present value of a five-year, 5 percent coupon bond with a face value of $10,000. What happens when the interest rate goes to 3 percent? What happens when the interest rate goes to 1 percent? Instructions: Enter your responses rounded to the nearest penny (two decimal places). PV at an interest rate of 2% = $ PV at an interest rate of 3% = $ The present value (Click to select) when the interest rate rises to 3 percent. PV at an interest rate of 1% = $ The present value (Click to select) when the interest rate falls to 1 percent