11. Bond A and B have the following Terms: Bond A Bond B Coupon rate of interest 10% 5% Principal $1,000 $1,000 Term to Maturity 8 yrs. 8 yrs. a.what should be the price of each bond if interest rate is 10% b.what will be the price of each bond if after five years have elapsed, interest rate is 10% c.what will be the price of each bond if, after eight years have elapsed interest rate is 8%. 12 A risky 30,000 investment is expected to generate the following cash flows: Yr. 1 2 3 $14,000 $15.750 $18,000 Yr. 1 2 3 $14,000 $15.750 $18,000 The probability of receiving each cash inflow is 90, 80 and 70 percent respectively, If the firm's coast of capital is 12 %, should the investment be made