Question: Question 1 : Bond prices and yields ( S 3 . 1 ) A 1 0 - year bond is issued with a face value

Question 1: Bond prices and yields (S3.1) A 10-year bond is issued with a face value of $1,000, paying interest of $60 a year. If interest rates increase shortly after the bond is issued, what happens to the bonds
o Coupon rate?
o Price?
o Yield to maturity?

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