What is the coupon payment on a $$1,000$ bond with a $5\%$ yield? $($Assume the coupon payment is paid annually.$)$

$$5\mathrm{.}00$

$$20\mathrm{.}00$

$$50\mathrm{.}00$

$$200\mathrm{.}00$

$$ $$500\mathrm{.}00$

Question $45$

$7$ pts

Suppose that the interest rate in the market rises to $7\%.$ How would this interest rate change affect the bond value and coupon payment of the debt instrument described in question $44?$

Bond Value $=$$$714,$ Coupon Payment $=$$$30\mathrm{.}00$

Bond Value $=$$$714,$ Coupon Payment $=$$$50\mathrm{.}00$

Bond Value $=$$$714,$ Coupon Payment $=$$$70\mathrm{.}00$

Bond Value $=$$$1,000,$ Coupon Payment $=$$$50\mathrm{.}00$

Bond Value $=$$$1,007,$ Coupon Payment $=$$$70\mathrm{.}00$