1 points Save Answ On Monday, March 16, 2020, the Federal Reserve lowers the benchmark interest rates in response to the risks the COVID-19 poses to the economy. Consequently, market interest rates are dropped accordingly. As an investor of IBM 2% bond (stated annual coupon rate of 296), you've kept a close eye on the movement of the market interest rate. Which one of the following observations is correct, if everything else remains unchanged? a. The current yield of the bond will decrease. b. The annual coupon rate will decline. c. The bond price expects to decline. d. The bond's credit rating will improve. Shareholders of Caterpillar Inc. expect to earn 14.5% rate of return on a $45.50 stock. Caterpillar just recently paid out dividends of $2 per share. What is Caterpillar's implied capital gain yield? 17 A. 9.68% OB. 10.10% C. 13.8996 OD. 12.50%