If you own a bond with a 3 percent coupon rate and new bonds are ...

[xroflmao]

If you own a bond with a 3 percent coupon rate and new bonds are paying 8 percent, what will happen to your bond's market price?
 
  What will be an ideal response?

Question 2

Refer to the Article Summary. Assume that more foreign governments and hospitals begin to offer and publicize their medical services to American medical tourists and, due to the growing number of aging baby boomers, more Americans desire hip-
 
  replacement surgery. All else equal, what will happen in the market for hip-replacement surgery as a result of these two factors?
  A) Demand will increase, but these two factors will not shift the supply curve.
  B) Demand and supply will both increase.
  C) Demand will increase and supply will decrease.
  D) Supply will increase, but these two factors will not shift the demand curve.

[ririgirl15]

Answer to Question 1

It will go down.

Answer to Question 2

B