Question: I really need help with these problems (Bond valuation relationships) Stanley, Inc. issuas 20-year $1,000 bonds that pay $75 annually. The market price for the
(Bond valuation relationships) Stanley, Inc. issuas 20-year $1,000 bonds that pay $75 annually. The market price for the bonds is 51,053 . The market's required yleld 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 13 percent or (ii) decreases fo 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 markef's fequired 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 marke's fequired yieid to maturity on a comparable-isk bond increases io 13 percent? (Round to the nearest cent) b. (ii) What is the value of the bond if the market' required yield to maturity on a comparablerisk bond decreases to 5 percent? (Round to the nearest cent) C. Under which of the creumstances in part (b) should you purchase the bond? (Select from the drop-down menust) If the yield io maturity on a comparable-rak bond
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