1. The current market interest rate increases from 8 percent to 10 percent, Due to interest rate reinvestment, the bondholders will

a. receive a lower market value for the bond

b. receive a higher principal at maturity of the bond

c. call back the bond before its maturity

d. earn a lower return on the reinvested cash flows

e. receive a lower coupon interest rather than mentioned in the bond indenture