2.

Table 10-2 Impact of time to maturity on bond prices a. Assume the interest rate in the market (yleld to maturity) goes down to 8 percent for the 10 percent bonds. Using column 2 , indicate what the bond price will be with a 5-year, a 15 -year, and a 20 -year time period. b. Assume the interest rate in the market (yleld to maturity) goes up to 12 percent for the 10 percent bonds. Using column 3 . indicate what the bond price will be with a 5 -year, a 15 -year, and a 20 -year period b. Assume the interest rate in the market (yield to maturity) goes up to 12 percent for the 10 percent bonds. Using column 3 . indicate what the bond price will be with a 5 -year, a 15 -year, and a 20 -year period