The Sandhill Department of Transportation has issued 25-year bonds that make semiannual coupon payments at a rate of 9.625 percent. The current market rate for similar securities is 11.8 percent. Assume that the face value of the bond is $1,000.

What is the current market value of one of these bonds? (Round answer to 2 decimal places, e.g. 15.25.)

Current market value

$.

What will be the bonds price if rates in the market (i) decrease to 9.80 percent or (ii) increase to 12.8 percent? (Round answers to 2 decimal places, e.g. 15.25.)

			Bond's price
(i)	Decrease to 9.80 percent		$
(ii)	Increase to 12.8 percent		$

Suppose the bond were to mature in 12 years. What will be the bonds price if rates in the market (i) decrease to 9.80 percent or (ii) increase to 12.8 percent? (Round answers to 2 decimal places, e.g. 15.25.)

(i)	Bond's price if rate decrease to 9.80 percent		$
(ii)	Bond's price if rate increase to 12.8 percent		$