What would be your percentage return on investment

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Reference no: EM131620266

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 10 percent to 9 percent.

a. What is the bond price at 10 percent?

b. What is the bond price at 9 percent?

c. What would be your percentage return on investment if you bought when rates were 10 percent and sold when rates were 9 percent? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Reference no: EM131620266

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