Go to table 10-1 which is based on bonds paying 10 % interest for 20 years. Assume interest rates in the market ( yield to maturity) decline from 11 % to 8%:
a. what is the bond price at 11%
b. what is the bond price at 8%
c. what would be your percentage return on investment if you bought when rates 11 % and sold when rates were 8 %
