What is the bond price at 11 percent

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Which is based on bonds paying 10 percent interest for 20 years. Assume interest rates in the market (yield to maturity) decline from 11 percent to 8 percent: (assume the standard bond par value as the future value)

a) What is the bond price at 11 percent?

b) What is the bond price at 8 percent?

c) What would be your percentage return on investment if you bought when rates were 11 percent and sold when rates were 8 percent sales price?

Reference no: EM131246706

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