Refer to Table $10-2$

a$.$ Assume the interest rate in the market $($yield to maturity$)$ goes down to $8$ percent for the $10$ percent bonds. Using column $2$ indicate what the bond price will be with a $10-$year, a $20-$year, and a $30-$year time period.

$\backslash$table$[[$Maturity$,$Bond Price$],[10$ year,$],[20$ year,$],[30$ year,$]]$

b$.$ Assume the interest rate in the market $($yield to maturity$)$ goes up to $12$ percent for the $10$ percent bonds. Using column $3,$ indicate what the bond price will be with a $10-$year, a $20-$year, and a $30-$year period.

$\backslash$table$[[$Maturity$,$Bond Price$],[10$ year,$],[20$ year,$],[30$ year,$]]$

c$.$ Assume the interest rate in the market $($yield to maturity$)$ goes down to $8$ percent for the $10$ percent bonds. If interest rates in the market are going down, which bond would you choose to own?

$10$ Years

$20$ Years

$30$ Years

d$.$ Assume the interest rate in the market $($yield to maturity$)$ goes up to $12$ percent for the $10$ percent bonds. If interest rates in the market are going up$.$ which bond would you choose to own?

$10$ Years

$20$ Years

$30$ Years