Maryland Department of Transportation has issued 25-year bonds that make semiannual coupon payments at a rate of 9.11 percent. The current market rate for similar securities is 10.00 percent.
a. What is the current market value of one of these bonds? (Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answer to 2 decimal places, e.g. 15.25.) Current market value $
b. What will be the bond's price if rates in the market (i) decrease to 8.00 percent or (ii) increase to 12.00 percent? (Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answer to 2 decimal places, e.g. 15.25.) (i) Decrease to 8.00 percent $ (ii) Increase to 12.00 percent $