Market Yield Rates and Bond Values.

Smith & Company issued $100 million maturity value of ten-year bonds, which carried a coupon rate of six percent, with interest paid semiannually. At the time of the debt offering, equivalent risk-rated bonds were yielding eight percent. One year after the six-year bond offering, yield rates had fallen to four percent; but, by the second anniversary of the bond sale, the yield rate on similarly risk-rated debt instruments had risen to ten percent. Calculate the proceeds from the sale of the six percent, six-year bonds. Calculate the book value of the bonds after one year and after two years. Calculate the market value of the bonds after one year and after two years. What is the relationship between market yield rates and bond values?