Question: A 1 8 - year, $ 1 , 0 0 0 par value strip bond is to be issued to yield 1 0 percent. (

A 18-year, $1,000 par value strip bond is to be issued to yield 10 percent. (Use a Financial calculator to arrive at the answers. Round the final answers to 2 decimal places.)a. What should be the initial price of the bond?Price of the bond$b. If immediately upon issue,interest rates dropped to 9 percent, what would be the value of the strip bond?Value of the bondc. If immediately upon issue, interest rates increased to 11 percent, what would be the value of the strip bond?Value of the bond$

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