Suppose a bond with no expiration date has a face value of $10,000 and annually pays a fixed amount of interest of $800. Compute and enter in the spaces provided inthe table below eitherthe interest rate that the bond would yield to a bond buyer at each of the bond prices listed or the bond price at each of the interest yields shown.

Instructions: For bond prices, round to the nearest dollar. For interest rate, round your answer up to two decimal places.

Bond PriceInterest rate(s) %

BOND PRICE. INTEREST RATE %.

$ 8,000. ____________

____________ $8.89

$10,000 ____________

$11,000 _____________

____________ $6.15

What generalization can be drawn from the completed table?

A) Bond price and interest rate are directly related.

B) There is insufficient data to make a generalization.

C) Bond price and interest rate are not related.

D )Bond price and interest rate are inversely related.