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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)

image text in transcribedimage text in transcribed 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) decline from 10 percent to 8 percent. a. What is the bond price at 10 percent? b. What is the bond price at 8 percent? c. What would be your percentage return on investment if you bought when rates were 10 percent and sold when rates were 8 percent? Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. Table 10-1 Bond price table

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