A 10-year Treasury bond is issued with a face value of $1,000, paying
interest of $60 a year. If market yields increase shortly after the
T-bond is issued, what happens to the bond's:
a. coupon rate?
b. price?
c. yield to maturity?

Rhemaword ?

A.	The coupon rate is $60 per year and is unaffected by changes in
market interest rates.

B.	When market yields rise, bond prices fall to increase the yield to
the new market levels.  As Franklin Templeton notes in this excellent
summary of bonds and interest rates, ?In order to sell their existing
bonds, investors have to reduce their prices to make them equally
attractive.?

Franklin Templeton
?How do interest rates affect bond prices??
http://www.franklintempleton.com/retail/jsp_cm/sales_tools/feature_prog/tax_free/pub/int_rate_article.jsp

C.  The yield-to-maturity increases because of the bond?s price decline.

Investopedia.com
?Yield to Maturity? (undated)
http://www.investopedia.com/terms/y/yieldtomaturity.asp

Google search strategy:
Bonds ?rise in interest rates?

Best regards,

Omnivorus-GA

Thanks so much, your assistance and knowledge is greatly appreciated.

I wonder how many times this question been posted in various scenarios on GA?