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The value of this bond is equal to $1,000 1.)What would happen to the bond's...

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Finance

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The value of this bond is equal to $1,000 1.)What would happen to the bond's value if inflation fell and declined to 7% ? Would we now have a premium or a discount bond? 2.)What would happen to the value of the 10 -year bond over time if the required rate of return remained at 13% ? If it remained at 7% ? (Hint: With a financial calculator, enter PMT, I/YR, FV, and N, and then change N to see what happens to the PV as the bond approaches maturity.)

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