$($Bond valuation relationshlips$)$ Aryons Public Urifies iswued a bond that poys $$80$ in interest, wich a $$1,000$ par value. It matires in $25$ years. The markers requined yeld to muturity on a comparatlo$-$rist bond is $7$ percert

a: Calculate the value of the bond.

b$.$ How does the value change it Be markets required yield to maturty on a comparable$-$tisk bond $($i$)$ incteases to $10$ percent or $(9)$ decreases to $6$ percent?

c$.$ Explain the implications of your answers in pat b as they relate to interest$-$rate risk premium bonds, and divcount bonds.

d$.$ Assume that the bond matures in $5$ yearn instead of $25$ years. Recompule your answers in parts a and b$.$

e$.$ Explain the implications of your answers in part d as they relate lo inferest$-$eate rak, premium bonds, and dscount bonds.

a$.$ What is the value of the bond if the markers required yeid to maturity on a comparable risk bend is $7$ pereent?

$$1\mathrm{.}116\mathrm{.}54($Round to the nearest cent.$)$

b$.($i$)$ What is the value of the bond it the markers required yeld to maturty in a comparable$-$tisk bond incremes to $10$ percent?

$51229\mathrm{.}40($Round to the nearest cent$)$