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 decrease from 10 to 8 percent. a. What is the bond price at 10 percent? Answer is complete but not entirely correct. Bond price $ 513.04 X b. What is the bond price at 8 percent? Answer is complete but not entirely correct. Bond price 789.50 c. What would be your percentage return on the investment if you bought when rates were 10 percent and sold when rates were 8 percent? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Return on investment Table 10-1 Bond price table Bond Price Yield to Maturity 2% 4% 6% 7% 8% 9% 10% 11% 12% 13% (10% Interest Payment, 20 Years to Maturity) PV of PV of Coupons Principal $1,635.14 $672.97 1,359.03 + 456.39 1,146.99 + 311.80 1,059.40 + 258.42 981.81 + 214.55 912.85 + 178.43 851.36 + 148.64 796.33 + 124.03 746.94 103.67 702.48 86.78 662.31 72.76 592.88 51.39 486.96 26.08 395.39 11.53 II III IL || |||||||||||||||||| $2,308.11 1,815.42 1,458.80 1,317.82 1,196.36 1,091.29 1,000.00 920.37 850.61 789.26 14% 16% 20% 25% + + + + + + 735.07 644.27 513.04 406.92