[LostInTheSauce7]

Suppose Hillard Manufacturing sold an issue of bonds with a 10-year maturity, a $1,000 par value, a 10 percent coupon rate, and semiannual interest payments.

A) Two years after the bonds were issued, the going rate of interest on bonds such as these fell to 6 percent. At what price would the bonds sell? Round your answer to two decimal places.

B) Suppose that, 2 years after the initial offering, the going interest rate had risen to 12 percent. At what price would the bonds sell? Round your answer to two decimal places.

C) Suppose that the conditions in part a existed - 2 years after the issue date, interest rates fell to 6 percent . Suppose further that the interest rate remained at 6 percent for the next 8 years. What would happen to the price of the bonds over time?

I am willing to pay for answers that show work.

[ArcSine]

• If you just want someone to do your homework for you because doing it yourself would cut into your Xbox time, that ain't going to happen.

• If you've made a serious and diligent effort at learning the material in the textbook, but you're still left with some gaps in your understanding, that's a different story. No textbook is perfect at explaining every detail of every issue; I get that.

To get assistance, you'll need to demonstrate that the latter category applies. If you've poured some major time and effort into trying to absorb what the book is teaching, then you do indeed get some of it. Start by showing your attempts at answering, and your thoughts on approaching, the problem. (Remember that "I can't even begin to know where to start" = "I haven't even opened the book").

So you kick it off, amigo, by showing your effort, and you'll get assistance.

(Side piece of advice: Do not offer to purchase homework answers. That would put you squarely in the middle of a third category: Those spending their entire existence barely getting by, if at all. That ain't where you want to be.)