Question: Problem 10-2 Determining Interest and Approximate Bond Value [LO2] Assume that three years ago, you purchased a 10 year corposate bond that pays 12.0 percent.

Problem 10-2 Determining Interest and Approximate Bond Value [LO2] Assume that three years ago, you purchased a 10 year corposate bond that pays 12.0 percent. The purchase price was $1,000. Also. Bssume that today comparable bonds are paying 110 percent. W) What is the annual dollar amount of interest that you receive from your bond investment? (Omit the " $ " sign in your response.) Amount of interest bj Assuming that comparable bonds are paying 11.0 percent, what is the approximate market price for which you could sell your bond? (Round your anwwer to 2 decimel places. Omit the "\$" sign in your response.) Market price nDid the bond increase of decrease in value? Increased in value. Decreased in value. cewWhy did the bond inciease or decrease in value? Because maket rates decreased. Decause market rates increased

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