1. 6. You observe a banker give $75 for a bond that pays out $100 in one year. Based on this observation, what do you conclude about the interest rate? Suppose that the price of this bond today suddenly increases to $80. Now what do you conclude about the interest rate? (Remember even though the price changes, the bond itself still pays $100 a year from now.) Does an increase in the price of bonds today imply market interests rates have gone up or gone down?