On March 16 , 2020 , the Federal Reserve lowers the benchmark interest rates in response to the risks the COVID - 19 poses to the economy . Consequently , market interest rates are dropped accordingly . As an investor of IBM bond with 2 % stated annual coupon rate of 2 % , you have kept a close eye on the movement of the market interest rate . Which one of the following observations is correct , if everything else is unchanged ? The current yield of the bond will increase . OB IBM's corporate bond is independent of market interest rates . The bond price expects to increase . OD The stated annual coupon rate of the bond will be adjusted downward