In practice, corporate bonds are quoted in 1/8th increments, so a quote of 99 1/8 represents 99.125% of par. A bond with par value of $1,000 has a quote of 99 1/8 means it is now traded at $991.25. A company issued $100,000 at 100% bonds of par on January 1, 2010. That is this bond is issued at par. On December 31, 2010 the bonds are quoted on the bond exchange at 102.5, i.e., 102.5% of par. Since the issue date, what has happened to the market interest? The market rate decreased. The market rate increased. The market rate did not change. The change in the market cannot be determined now