A 6 year bond with a 7 percent coupon is selling to yield 8 percent. If interest

Question:

A 6 year bond with a 7 percent is selling to yield 8 percent. If interest rates remain constant, one year from now will the price of this bond be lower or higher? Prove your answer.
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...