maturity on a comparable$-$risk bond is $11$ percent.

a$.$ Calculate the value of the bond.

b$.$ How does the value change if the yield to maturity on a comparable$-$risk bond $($i$)$ increases to $14$ percent or $($ii$)$ decreases to $8$ 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 $3$ years instead of $20$ years and recalculate 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 $11$ percent?

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

b$.($i$)$ What is the value of the bond if the yield to maturity on a comparable$-$risk bond increases to $14$ percent?

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

b$.($ii$)$ What is the value of the bond if the yield to maturity on a comparable$-$risk bond decreases to $8$ percent?

$($Round to the nearest cent.$)$ value of a bond to by contrast, an increase in interest rates will cause the value tc $($Select from the drop$-$down menus.$)$

Also, based on the answers in part b$,$ if the yield to maturity $($current interest rate$)$

equals the coupon interest rate, the bond will sell at

exceeds the bond's coupon rate, the bond will sell at and is less than the bond's coupon rate, the bond will sell at $($Select from the drop$-$down menus.$)$

d$.$ Assume the bond matures in $3$ years instead of $20$ years, what is the value of the bond if the yield to maturity on a comparable$-$risk bond is $11$ percent?

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