c.	What will happen to the bond price if the yield to maturity falls to 7.0%?

A General Power bond with a face value of $1,000 carries a coupon rate of 9.0%, has 9 years until maturity, and sells at a yield to maturity of 8.0%. (Assume annual interest payments.)

What interest payments do bondholder receive each year?

Interest payment $

At what price does the bond sell? Do not round intermediate calculations. Round answer to 2 decimal places.

Price ? $

What will happen to the bond price if the yield to maturity fall to 7.0%. Do not round intermediate calculations and round to 2 decimal places.

Price will Rise or Fall? By $