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Table 10-1 Bond Price Table 10% Interest Payment, 20 Years

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Table 10-1 Bond Price Table 10% Interest Payment, 20 Years to Maturity
Yield to Maturity (%)     Bond Price (\$)
2                               2308.10
4                              1815.00
6                              1459.00
7                              1317.00
8                             1196.80
9                             1090.90
10                             1000.00
11                             920.30
12                             850.90
13                           789.50
14                           735.30
16                           643.90
20                           513.00
25%                           407.40

Go 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 11 percent to 8 percent:
a.     What is the bond price at 11 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 11 percent and sold when rates were 8 percent?
Submitted: 8 years ago.
Category: Homework
Expert:  Neo replied 8 years ago.
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Customer: replied 8 years ago.

The answer is correct, however another source submitted the reply back answer earlier. Thank You and I am sure that future problems will require your assistance. If you do not mind, I would like to ask my next question personally to you.

Customer: replied 8 years ago.

Neo, You are terrific as usual. Thanks so much. Marcus