Assume that Capital Healthcare sold bonds that have a 10-year maturity, a 9 percent coupon rate with annual payments, and a $1,000 par value.

A Suppose that one year after the bonds were issued, the required interest rate fell to 6 percent. What would be the bonds value?

B Suppose that one year after the bonds were issued, the required interest rate rose to 11 percent. What would be the bonds value?

C What would be the value of the bonds three years after issue in each scenario above, assuming that interest rates stayed steady at 6 percent and 11 percent?