Problem 10-9 Interest rate effect [LO3 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) increase from 9 to 12 percent. 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? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. Enter the value as a positive amount.) Input variables: a. Bond price at interest rate a from table 10-1 b. Bond price at interst rate b from table 10-1 $1,090.29 $850.61 Solution and Explanation: Bond price b. Bond price C. Percentage return