Question: 8. Go to Table 101, which is based on bonds paying 10 percent interest for 20 years. Assume interest rates in the market (yield to

8. Go 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 11 percent to 8 percent: 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? The further the yield to maturity on a bond changes from the stated interest rate on the bond, the greater the price change effect will be. This is illustrated in Table 101

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