5. Equinox Inc. issued a bond that pays $80 in interest, with a $1,000 par value. It matures in 20 years. The market's required yield to maturity on a comparable- risk bond is 7 percent. a. Calculate the value of the bond. b. How does the value change if the market's required yield to maturity on a comparable-risk bond i. Increases to 10 percent or ii. Decreases to 6 percent? of 20 years. Recompute your answers in part b. as they relate to interest-rate risk, premium c. Assume that the bond matures in 10 years instead d. Explain the implications of your answers in part d bonds, and discount bonds. Page 1 of 1