19. (Bond valuation relationships) A bond of Telink, Corporation pays $110 in annual interest, with a $1,000 par value. The bonds mature in 25 years. The market's required yield to maturity on a comparable-risk bond is 9 percent. a. Calculate the value of the bond. What is the value of the bond if the market's required yield to maturity on a comparable-rikk bond is 9 percent? $ (Round to the nearest cent.) b. How does the value change if the market's required yield to maturity on a comparable risk bond (1) increases to 12 percent or (ii) decreases to 5 percent? (i) What is the value of the bond if the market's required yield to maturity on a comparable risk bond increases to 12 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. The change in the value of a bond caused by changing interest rates is called interest-rate risk. Based on the answers in part b, a decrease in interest rates (the yield to maturity) will cause the value of a bond to (Select from the drop-down menus.) increase/be unchanged/decrease ; by contrast, an increase in interest rates will cause the value to increase/be unchanged/decrease Also, based on the answers in part b, if the yield to maturity (current interest rate): (Select from the drop-down menus.) equals the coupon interest rate, the bond will sell at parladiscountapremium exceeds the bond's coupon rate, the bond will sell at p par/a discount/a premium And is less than the bond's coupon rate, the bond will sell at par/a discount/a premiam