Problem 10-2 Determining Interest and Approximate Bond Value [LO2] Assume that three years ago, you purchased a 10 -year corporate bond that pays 7.5 percent. The purchase price was $1,000. Also, assume that today comparable bonds are paying 6.5 percent. a) What is the annual dollar amount of interest that you receive from your bond investment? (Omit the "\$" sign in your response.) Amount of interest b) Assuming that comparable bonds are paying 6.5 percent, what is the approximate market price for which you could sell your bond? (Round your answer to 2 decimal places. Omit the " $ " sign in your response.) Market price $ c-1) Did the bond increase or decrease in value? Decreased in value. increased in value. c-2) Why did the bond increase or decrease In value? Because market rates decreased. Because market rates increased