Question: 2. Refer to Table 101, which is based on bonds paying 10 percent interest for 20 years. Assume interest rates in the market (yield to

 2. Refer to Table 101, which is based on bonds paying

2. Refer to Table 101, which is based on bonds paying 10 percent interest for 20 years. Assume interest rates in the market (yield to maturity) decline from 12 percent to 8 percent. a. What is the bond price at 12 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 12 percent and sold when rates were 8 percent? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

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