Likewise, if interest rates soared to 15%, then an investor could make $150 from the government bond and would not pay $1,000 to earn just $100. This bond would be sold until it reached a price that equalized the yields, in this case to a price of $666.67. The price of a bond changes in response to changes in interest rates in the economy. The bond issuer may include a put option in the bond that benefits the bondholders in return for a lower coupon rate or to induce the bond sellers to make the...