If you purchase for $1,000 a bond that pays $40 annually to the holder, and then "the" (that is, the market) interest rate rises to 8 percent, the price of that bond would now be:

Generally when interest payments increases, bond prices falls

Explanation:

If you purchase for $1,000 a bond that pays $40 annually to the holder, and then "the" (that is, the market) interest rate rises to 8 percent, the price of that bond would now be the present value of the future payments

Assume that the bond will last for 3 years to maturity

Interest payments at $40 = Total of $120 for 3 years

Interest payments at $80 = Total of $240 for 3 years

The additional interest payment from the growth will adjusted against the bond value of $1000 which will then be $1000 - (240 - 120). The bond price will fall to $880

Generally when interest payments increases, bond prices falls

d, conspicuous consumption is when you try to increase your wealth or social status (and in the case he's trying to create the perception of wealth considering he can't really afford it)

answer; commerce clearing house;