What happens to a bonds value, upon their offering of re-sale into the secondary market, when new bonds offer higher or lower yields? How does the holder of an existing bond, with a higher or lower value when offered in the secondary market, adjust for the movement in yield? Explain your answer in detail. Use the following factors to support your explanation:

(a). One 10-year bond; with a traditional par value; bought with a 5% coupon; offered for sale into a market where yields are 200 basis points higher.

(b). One 10-year bond; with a traditional par value; bought with a 5% coupon; offered for sale into a market where yields are 200 basis points lower.