This is an easy question for you to see one more time the negative relationship between interest rates and bond prices. There is a one-year discount bond in the bond market. It promises to pay $1,518 next year (F = $1,518). The following are three scenarios about the interest rates: 11111111111111 So we have: Price of the bond in scenario 1 = dollars. Price of the bond in scenario 2 = dollars. Price of the bond in scenario 3 = dollars