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(Bond valuation​) You own a bond that pays ​$100 in annual​ interest, with a ​$1,000 par...

(Bond valuation​) You own a bond that pays ​$100 in annual​ interest, with a ​$1,000 par value. It matures in 15 years. Your required rate of return is 11 percent. How would the bond value change if your required rate of return​ decreases from 11 percent to 6 ​percent?

(Round to the nearest cent.)

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The bond value will increase by $460.40.

The bond value will increase by $928.09.

The bond value will decrease by $460.40.

The bond value will stay the same.

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Answer is The bond value will increase by $460.40

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