Midland Oil, Inc. purchased $1,000 par value bonds paying 10% interest semi-annually. The bond will mature in 5 years. Assume interest rate in the market declinesf rom 11% to 7%. What is the bond...

Midland Oil, Inc. purchased $1,000 par value bonds paying 10% interest semi-annually. The bond  will mature in 5 years. Assume interest rate in the market declinesf rom 11% to 7%.

What is the bond price at percent?

What is the bond price at 7 percent?

If Midland Oil sold the bond when the market interest rate dropped from 11 percent to 7 percent, what would be Midland’s return on its investment?