10-1 Suppose Ford Motor Company sold an issue of bonds with a 10-year maturity, a $1,000 par value, a 10% coupon rate, and semiannual interest payments. a. Two years after the bonds were issued, the going rate of the interest on the bonds similar to these fell to 6%. At what price would the bonds sell? b. Two years after the bonds were issued, the going rate of the interest on the bonds similar to these rose to 12%. At what price would the bonds sell? c. Suppose the interest rate remained at 6% for the next eight years. What would happen to the price of th Ford Motor Company bonds over time? 10-2 The Desi Company has two bond issues outstanding. Both bonds pay $100 annual interest plus $1,000 at maturity. Bond L has a maturity of 15 years and Bond S has a maturity of one year. Interest is paid annually. a. What will be the value of each of these bonds when the going rate of interest is 5%, 7%, and 11%? Assume there is only one more interest payment to be made on Bond S. b. Why does the longer-term (15-year) bond fluctuate more when interest rates change than does the shorter-term bond (one-year)