Q. When the effective (market) rate is 8%, illustrate what is the selling price of a 10%, 5 year, $1,000 bond that pays interest semi-annually (twice a year)? 8. When the effective (market) rate is 10%, illustrate what is the selling price of an 8%, 20 year, $1,000 bond that pays interest semi-annually (twice a year)? 9. When the effective interest rate is 12%, illustrate what is the market value of a 16%, 8-year, $1,000 bond that pays interest quarterly?