Refer to table 10-1, which is based on bonds paying 10 percent interest for 20 years. assume interest rates in the market (yield to maturity) decline from 7 percent to 6 percent.
a. what is the bond price at 7 percent?
b. what is the bond price at 6 percent?
c. what would be your percentage return on investment if you bought when rates were 7 percent and sold when rates were 6 percent? (do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.)
