Question: If market interest rates decrease from 6 % to 5 % , what would happen to the price of a bond with a 6 %

If market interest rates decrease from

6 %

5 %,

what would happen to the price of a bond with a

6 %

coupon rate?Group of answer choicesThe bond's price would increase, causing it to trade at a premium.The bond's price would decrease, causing it to trade at a discount.The bond's coupon payment would adjust down from $

60

to $

50 .

The bond's price would remain unchanged.

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