What would happen to the bond’s value if inflation fell anddeclined to 7%? Would we now have a premium or a discount bond?(answer with using the question below)
( question B pertaining to the question above
How is the value of a bond determined? What is the value of a10-year, $1,000 par value bond with a 10% annual coupon if itsrequired rate of return is 10%?)
