What would be your percentage return on investment if you


Which is based on bonds paying 10 percent interest for 20 years. Assume interest rates in the market (yield to maturity) decline from 11 percent to 8 percent: (assume the standard bond par value as the future value)

a) What is the bond price at 11 percent?

b) What is the bond price at 8 percent?

c) What would be your percentage return on investment if you bought when rates were 11 percent and sold when rates were 8 percent sales price?

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Management Theories: What would be your percentage return on investment if you
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