Check my work Refer to Table 10 1, assume interest rates in the market (yleld to maturity) are 7 percent for 20 years on a bond paying 10 percent a What is the price of the bond Bond price b Assume 10 years have passed and interest rates in the market have gone up to 12 percent Now, using Table 10 2 for 10 years, what Is the price of the bond Bond price c What would your percentage return be if you bought the bonds when Interest rates in the market were 7 percent for 20 years and sold them 10 years later when Interest rates were 12 percent (Do not round Intermediate calculations Input your answer as a percent rounded to 2 decimal places ) Rotum on investment Table 10 1 Bond price table Bond Price Yold to Maturity 29 496 696 796 896 9 10 11 1296 13 14 1096 2096 25 (10 Interest Payment, 20 Years to Maturity PV of PV 01 Coupons Principal $1,695 14 $672 97 1 359 03 456 39 1,146 99 311 80 1 050 40 258 42 981 81 214 55 912 85 178 43 851 36 148 04 796 33 124 03 746 04 103 67 70248 86 78 662 31 72 76 592,88 51 39 486,08 26 08 395 39 11 53 $2,308 11 1,815 42 1,458 80 1,317 82 1 196 36 1,091 29 1 000 00 920 37 850,61 789 26 735 07 64427 513 04 408 92 MacBook Pro 30 DEO ODE Ta

Question

Check my work Refer to Table 10 1, assume interest rates in the market (yleld to maturity) are 7 percent for 20 years on a bond paying 10 percent a  What is the price of the bond  Bond price b  Assume 10 years have passed and interest rates in the market have gone up to 12 percent  Now, using Table 10 2 for 10 years, what Is the price of the bond  Bond price c  What would your percentage return be if you bought the bonds when Interest rates in the market were 7 percent for 20 years and sold them 10 years later when Interest rates were 12 percent  (Do not round Intermediate calculations  Input your answer as a percent rounded to 2 decimal places ) Rotum on investment Table 10 1 Bond price table Bond Price Yold to Maturity 29 496 696 796 896 9  10  11  1296 13  14  1096 2096 25  (10  Interest Payment, 20 Years to Maturity PV of PV 01 Coupons Principal $1,695 14 $672 97 1 359 03 456 39 1,146 99 311 80 1 050 40 258 42 981 81 214 55 912 85 178 43 851 36 148 04 796 33 124 03 746 04 103 67 70248 86 78 662 31 72 76 592,88 51 39 486,08 26 08 395 39 11 53 $2,308 11 1,815 42 1,458 80 1,317 82 1 196 36 1,091 29 1 000 00 920 37 850,61 789 26 735 07 64427 513 04 408 92 MacBook Pro 30 DEO ODE Ta

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Check my work Refer to Table 10-1, assume interest rates in the market (yleld to maturity) are 7 percent for 20 years on a bond

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