A bond that pays a fixed interest payment of $100 per year falls in price from $1000 to $800. What happens to the interest rate on the board?

21. A bond that pays a fixed interest payment of $100 per year falls in price from $1,000 to $800. What happens to the interest rate on the bond? increase by 1.25 percent per year decrease by 1.25 percent per year increase by 2.50 percent per year decrease by 2.50 percent per year