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 8 to 14 percent.

(10% Interest Payment, 20 Years to Maturity)
Yield to Maturity	PV of Coupons		PV of Principal		Bond Price
2%	$ 1,635.14	+	$ 672.97	=	$ 2,308.11
4%	1,359.03	+	456.39	=	1,815.42
6%	1,146.99	+	311.80	=	1,458.80
7%	1,059.40	+	258.42	=	1,317.82
8%	981.81	+	214.55	=	1,196.36
9%	912.85	+	178.43	=	1,091.29
10%	851.36	+	148.64	=	1,000.00
11%	796.33	+	124.03	=	920.37
12%	746.94	+	103.67	=	850.61
13%	702.48	+	86.78	=	789.26
14%	662.31	+	72.76	=	735.07
16%	592.88	+	51.39	=	644.27
20%	486.96	+	26.08	=	513.04
25%	395.39	+	11.53	=	406.92

A. What is the bond price at 8 percent?

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B. What is the bond price at 14 percent?

C. What would be your percentage return on the investment if you bought when rates were 8 percent and sold when rates were 14 percent?

Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.