Question: Refer toTable 10-1, which is based on bonds paying 10 percent interest for 20 years. Assume interest rates in the market (yield to maturity) increase

Refer toTable 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 7 to 20 percent.

a.What is the bond price at 7 percent?

Bond price$

b.What is the bond price at 20 percent?

Bond price$

c.What would be your percentage return on the investment if you bought when rates were 7 percent and sold when rates were 20 percent?(Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. Enter the value as a positive amount.)

Return on investment%(Click to select)

Loss

Profit

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