A Sunfish bond is paying 10 percent interest for 20 years on a semiannual basis. Assume...

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A Sunfish bond is paying 10 percent interest for 20 years on asemiannual basis. Assume interest rates in the market (yield tomaturity) decline from 12 percent to 8 percent: (Use a Financialcalculator to arrive at the answers. Do not round intermediatecalculations. Round the final answers to 2 decimal places.) a. Whatis the bond price at 12 percent? Bond price $ b. What is the bondprice at 8 percent? Bond price $ c. What would be the percentagereturn on an investment bought when rates were 12 percent and soldwhen rates are 8 percent? Return on investment %

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aInformation provided Par value future value 1000 Coupon rate 102 5 per semiannual period Coupon payment 0051000 50 Time 20 years82 40 semiannual periods Yield to maturity 122 6 per semiannual period The price of the bond is calculated by See Answer

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A Sunfish bond is paying 10 percent interest for 20 years on asemiannual basis. Assume interest rates in the market (yield tomaturity) decline from 12 percent to 8 percent: (Use a Financialcalculator to arrive at the answers. Do not round intermediatecalculations. Round the final answers to 2 decimal places.) a. Whatis the bond price at 12 percent? Bond price $ b. What is the bondprice at 8 percent? Bond price $ c. What would be the percentagereturn on an investment bought when rates were 12 percent and soldwhen rates are 8 percent? Return on investment %