Bond Interest Rate
A bond with 10 years until maturity, an 8% coupon, and an 8% yield to maturity increased in price to $1,107.83 yesterday. What apparently happened to interest rates(show your calculations)?
Answer: A. Rates increased by 2.0%. B. Rates decreased by 2.0%
C. Rates increased by .72%. D. Rates decreased by 1.5%