Problem 10-2 Determining Interest and Approximate Bond Value [LO2] Assume that three years ago, you purchased a 10-year corporate bond that pays 6.5 percent. The purchase price was $1,000. Also, assume that today comparable bonds are paying 5.5 percent. a) What is the annual dollar amount of interest that you receive from your bond investment? (Omit the "$" sign in your response.) $ Amount of interest b) Assuming that comparable bonds are paying 5.5 percent, what is the approximate market price for which you could sell your bon (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Market price $ c-1) Did the bond increase or decrease in value? O Decreased in value. O Increased in value. c-2) Why did the bond increase or decrease in value? c-2) Why did the bond increase or decrease in value? O Because market rates decreased. O Because market rates increased