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thank you in advance! I need all parts answered please Refer to Table 10-1, which is based on bonds paying 10 percent interest for 20
thank you in advance! I need all parts answered please
Refer to Table 10-1, which is based on bonds paying 10 percent interest for 20 years. Assume interest rates in the market (yleld to maturity) decline from 16 percent to 12 percent. a. What is the bond price at 16 percent? Bond price b. What is the bond price at 12 percent? Bond price c. What would be your percentage return on investment if you bought when rates were 16 percent and sold when rates were 12 percent? (Do not round Intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Return on investment Table 10-1 Bond price table Yield to Maturity 2% 4% 6% 7% 8% 9% 10% 11% 12% 13% 14% 16% 20% 25% (10% Interest Payment, 20 Years to Maturity) PV of PV of Coupons Principal $1,635.14 $672.97 1,359.03 456.39 1,146.99 311.80 1,059.40 258,42 981.81 214.55 912.85 178.43 851.36 148.64 796.33 124.03 746.94 103.67 702.48 86.78 662.31 72.76 592.88 51.39 486.96 26.08 395.39 11.53 DAUD88888I Bond Price $2,308.11 1,815.42 1,458.80 1.317.82 1.196.36 1,091.29 1,000.00 920.37 850.61 789.26 735.07 644.27 513.04 406.92 Step by Step Solution
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