Question

If a bond pays a fixed return of $500 a year and the current interest rate has risen from 5 percent to 10 percent, then the bond price must have:
Question 8 options:

1) risen from $25 to $50.

2) fallen from $50 to $25.

3) risen from $5,000 to $10,000.

4) fallen from $10,000 to $5,000.

5) risen from $1,000 to $5,000.