1.1 Dakota & Munroe an investment management firm are reviewing a newly issued 10 year bond, a $1,000 par value, a 10% coupon rate paid semiannually. Two years after issue, the going rate of interest on bonds such as these fell to 6%. At what price would the bonds sell? (1) B Suppose that 2 years after the initial offering the going rate of interest had risen to 12%. At what price would the bonds sell? C Suppose that 2 years after the issue date (as in part A) interest rates fell to 6%. Suppose further that the interest rates remained at 6% for the next 8 years. What would happen to the value of the bonds over time? (2) (4 Points)