$($Bond valuation relationships$)$ Stanley, Inc. issues $15-$year $$1,000$ bonds that pay $$85$ annually. The market price for the bonds is $$1,137.$ The market's required yield to maturity on a comparable$-$risk bond

is $7$ percent.

a$.$ What is the value of the bond to you?

b$.$ What happens to the value if the market's required yield to maturity on a comparable$-$risk bond $($i$)$ increases to $11$ percent or $($ii$)$ decreases to $5$ percent?

c$.$ Under which of the circumstances in part b should you purchase the bond?

a$.$ What is the value of the bond if the market's required yield to maturity on a comparable$-$risk bond is $7$ percent?

$ $($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 $11$ percent?

& $($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 $5$ percent?

$($Round to the nearest cent.$)$

c$.$ Under which of the circumstances in part $($b$)$ should you purchase the bond? $($Select from the drop$-$down menus.$)$

If the yield to maturity on a comparable$-$risk bond

$,$ you

purchase the Stanley bonds at the current market price of $$1,137.$