Bond prices and interest yields Consider a bond without expiration date that makes a fixed interest payment of $210 per year

 Bond prices and interest yields Consider a bond without expiration date that makes a fixed interest payment of $210 per year. Complete the following table by calculating the interest rate on the bond at different sale prices. (Hint: The effective interest rate on a bond is a ratio of the interest payment to the sale price of the bond times 100.) Price of Bond (Dollars) 1,200 1,000 Interest Rate (Percent) 20 24 750 32 600 40
Use the blue points (circle symbol) and the preceding table to plot the relationship between bond prices and interest rates on the following graph. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 35.0 31.5 Relationship 28.0 245 O 21.0 Interest Rate (Percent) 17.5 14.0 10.5 7.0 3.5 0 500 800 700 1100 1200 1300 800 900 1000 Price of Bond (Dollars) slope; in other words, there is The line showing the relationship between bond prices and interest rates has a relationship between bond prices and interest rates.