The face value of a bond is Rs. 100 and the coupon promised annually is Rs. 10. It is consul. What is its market price when the interest rate is 5%?

The face value of a bond is Rs. 100 and the coupon promised annually is Rs. 10. It is consul. What is its market price when the interest rate is 5%? what will be the price if the interest rate is 10%?

Now suppose that the interest rate is 1%. would you buy the bond if you believe that the interest rate has a chance of being 2% with a probability of 40%, of continuing unchanged with a probability of 50% and of being .75% with a probability of 10%?