What happens to the coupon rate of a $1,000 face value bond that pays $80 annually in interest if market interest rates change from 9% to 10%?

The coupon rate increases to 10%.

The coupon rate remains at 9%.

The coupon rate remains at 8%.

The coupon rate decreases to 8%.

Which of the following statements is correct for a 10% coupon bond that has a current yield of 7%?

The face value of the bond has decreased.

The bond's maturity value exceeds the bond's price.

The bond's internal rate of return is 7%.

The bond's market value is higher than its face value.