19 Check M 20. 21 22 23 4-9: The Inflation Premium (IP) Problem 4-21 Bond Valuation and Changes in Maturity and Required Retums Suppose Hillard Manufacturing 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 interest on bonds such as these fell to 8%. At what price would the bonds sell? Round the answer to the nearest cent. $ b. Suppose that 2 years after the initial offering, the going interest rate had risen to 15%. At what price would the bonds sell? Round the answer to the nearest cent. $ Suppose that 2 years after the issue date (as in part a) interest rates fell to 8%. Suppose further that the interest rate remained at 8% for the next 8 years. What would happen to the price of bonds over time? -Select 1. The price of the bond will remain the same. II. The price of the bond will rise, approaching $1,000 at the maturity date. III. The e of the decline, approaching $1,000 he me date. Check My Wor O-Icon Key Questions Navigation Menu Problem 4-21 age.com/ilrn/takeAssignment/takeAssignmentMain.do?takeAssignmentSessionLocator assignment-take, a6/51ac5-2925-456e-b962-3c643729a7791 Question 21 of 2 Gashi Armed MIS+Chapter+3+...xlsx MIS +3003 Chap....docx 1 Cho3x02_U7e (2).accdb docx MIS Chapter 3 Hwk.xlsx huly gi p e to search ) ENG