answer all 9 parts. READ INSTRUCTIONS

a. Calculate the value of the bond. b. How does the value change if the market's required yield to maturity on a comparable-risk bond (i) increases to 10 percent or (ii) decreases to 6 percent? c. Explain the implications of your answers in part b as they relate to interest-rate risk, premium bonds, and discount bonds. d. Assume that the bond matures in 15 years instead of 20 years. Recompute your answers in parts a and b. e. Explain the implications of your answers in part d as they relate to interest-rate risk, premium bonds, and discount bonds. a. What is the value of the bond if the market's required yield to maturity on a comparable-risk bond is 7 percent? $894.06 (Round to the nearest cent.) b. (i) What is the value of the bond if the market's required yield to maturity on a comparable-risk bond increases to 10 percent? $659.46 (Round to the nearest cent.) b. (ii) What is the value of the bond if the market's required yield to maturity on a comparable-risk bond decreases to 6 percent? $ (Round to the nearest cent.) a. Calculate the value of the bond. b. How does the value change if the market's required yield to maturity on a comparable-risk bond (i) increases to 10 percent or (ii) decreases to 6 percent? c. Explain the implications of your answers in part b as they relate to interest-rate risk, premium bonds, and discount bonds. d. Assume that the bond matures in 15 years instead of 20 years. Recompute your answers in parts a and b. e. Explain the implications of your answers in part d as they relate to interest-rate risk, premium bonds, and discount bonds. a. What is the value of the bond if the market's required yield to maturity on a comparable-risk bond is 7 percent? $894.06 (Round to the nearest cent.) b. (i) What is the value of the bond if the market's required yield to maturity on a comparable-risk bond increases to 10 percent? $659.46 (Round to the nearest cent.) b. (ii) What is the value of the bond if the market's required yield to maturity on a comparable-risk bond decreases to 6 percent? $ (Round to the nearest cent.)