Assume that three years ago, you purchased a corporate bond that pays 5.20 percent. The face value of the bond was $1,000. Also assume that three years after your bond investment, comparable bonds are paying 4.90 percent.

(a) What is the annual dollar amount of interest that you receive from your bond investment? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

(b) Assuming that comparable bonds are paying 4.90 percent, what is the approximate dollar price for which you could sell your bond? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

(c-1) Did the bond increase or decrease in value? Decreased in value Increased in value

(c-2) Why did the bond increase or decrease in value? Because market rates decreased Because market rates increased

2. Felice bought a duplex apartment at a cost of $205,000. Her mortgage payments on the property are $1,340 per month, $666 of which can be deducted from her income taxes. Her real estate taxes total $1,860 per year, and insurance costs $1,476 per year. She estimates that she will spend $1,074 each year per apartment for maintenance, replacing appliances, and other costs. The tenants will pay for all utilities.

What must she charge to make $3,100 in profit each year? (Do not round intermediate calculations. Round your answer to 2 decimal places. Ignore any tax effects.)