Determining Bond Prices, Interest Rates, and Financial Statement Effects Deere & Company's 2010 10-K reports the following footnote relating to long-term debt. Deere's borrowings include $300 million, 7.125% notes, due in 2031 (bolded below). Long-term borrowings at October 31 consisted of the following in millions of dollars: Notes and Debentures 6.95% notes due 2014: ($700 principal) Swapped $300 to variable interest rate of 1.25%-2009 4.375% notes due 2019 8-1/2% debentures due 2022 6.55% debentures due 2028 5.375% notes due 2029 8.10% debentures due 2030 7.125% notes due 2031 Other notes Total 2010 2009 $ 763 $ 800 750 750 105 105 200 200 500 500 250 250 300 300 461 168 $ 3,329 $ 3,073 A recent price quote (from Yahoo! Finance Bond Center) on Deere's 7.125% notes follows. Coupon Type Issuer Price Corp Deere & CO 131.84. YTM Current Fitch (%) Maturity (%) Yield (%) Rating Callable 7.125 2031 4.650 5.404 A No This price quote indicates that Deere's 7.125% notes have a market price of 131.84 (131.84% of face value), resulting in a yield to maturity of 4.65%. (a) Assuming that these notes were originally issued at par value, what does the market price reveal about interest rate changes since Deere issued its notes? (Assume that Deere's credit rating has remained the same.) Interest rates have increased.x There is not enough information. OInterest rates have remained the same. Interest rates have declined.