Final answer:
The payment amounts on a note can change based on the interest rate. If the interest rate increases, the value of the bond decreases, and you would expect to pay less for it.
Step-by-step explanation:
The payment amounts on a note can change, depending on the interest rate. When the interest rate rises, the present value of future payments decreases, which means the bond's value falls. Therefore, if the interest rate increases from 8% to 11%, you would expect to pay less than $10,000 for the bond. The change in interest rates affects the value of the bond in the market.