which is based on bonds paying 10 percent interest for 20 years. Assume interest rates in the market (yield to?

which is based on bonds paying 10 percent interest for 20 years. Assume interest rates in the market (yield to maturity) go from 10 percent to 7 percent.

a. What was the bond price at 10 percent?

b. What is the bond price at 7 percent?

c. What would be your percentage return on the investment if you bought when rates were 10 percent and sold when rates were 7 percent?

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  • Anonymous
    9 years ago
    Favorite Answer

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