Refer to Table 10-1, which is based on bonds paying 10 percent interest for 20 years. Assume interest rates in the market (yield to maturity) increase from 14 to 16 percent.

a. What is the bond price at 14 percent?

Bond price $ _______

b. What is the bond price at 16 percent?

Bond price $ _______

c. What would be your percentage return on the investment if you bought when rates were 14 percent and sold when rates were 16 percent? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. Enter the value as a positive amount.)

Return on investment % _________ LossProfit