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8. What will happen to the value of a bond when the inflation premium increases? a. The Required Rate of Return will decrease b. The Price of the Bond will increase C. The Price of the Bond will decrease d. There will be no change in the value of the bond. McGee e. None of the above. Which is it? b Preter C. Common stock d. Treasury bond e. None of the above. 10. A $1,000 20-year corporate bond pays $80 annually in interest. Currently, the bond is selling for $830. Why is that? It is because: a. Market rate plus inflation premium = coupon rate b. Market rate > coupon rate C. Market rate = coupon rate d. Market rate