Go 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)
a. What is the bond price at 9 percent?
b. What is the bond price at 12 percent?
c. What would be your percentage return on the investment if you bought when rates were 9 percent and sold when rates were 12 percent?
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Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
