Question: refer to table 101, which is based on bonds paying 10% interest for 20 years. Assume interest rates in the market(yield to maturity) decline from
refer to table 101, which is based on bonds paying 10% interest for 20 years. Assume interest rates in the market(yield to maturity) decline from 16% to 12%.
A. what is the bond price at 16%?
B. what is the bond price at 12%?
C. What would be your percentage return on investment if you bought when rates were 16% and sold when rates were 12% ( do not round intermediate calculations. Input your answers as a percent rounded to two decimal places.)
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