Consider a bond with a face value of $1000, a coupon rate of 8% (paid annually), and ten years to maturity. What is required of you: 

a. What is the price of this bond if the required rate of return (r) is 18 percent?

 b. What is the price if r increases to 20 percent? By what percentage did the price of the bond change?

 c. What is the price if r is five percent? If r increases to seven percent, what is the percentage change in price? 

d. From your answers in a to c, what can you say about the relative price volatility of a bond in high compared to low-interest rate environments?