BOND VALUATION Suppose Vital Motor Company sold an issue of bonds with a 10-year maturity, $1000 par value, a 10% coupon rate and semiannual interest payments. a. 2 years after the bonds were issued, market rate of interest fell to 6%. At what price would the bonds sell? b. Suppose that two years after the initial offering, the market interest rate increased to 12%. At what price the bonds sell? c. Assume the conditions in part a exists and market rate of 6% remain in the next 8 years? How would the price of the bond change? Draw a price graph for the bond for its entire life.