6. Arizona Public Utilities has an outstanding bond with a $1,000 par value and a 4.1% coupon rate (paid annually) which matures in 8 years. Market interest rates have fallen to 3.5%. Calculate the value of the bond. $1,041.24 (b) Suppose the price of the bond falls. What happens to the bond's Yield to Maturity? (c) Recalculate the price (value) assuming the market interest rate increases to 5%. $941.82 (d) Suppose the price of the bond rises to $1,000. Determine the bond's yield to maturity. (e) What is the price of the bond if market interest rates equal 4.1%? 7. Suppose Ford Motor Company sold an issue of bonds with a 15-year maturity and an 8.6% coupon rate, paid annually. Two years after the bonds were issued, the going rate of interest on bonds such as these increased to 9.6%. At what price would the bonds sell? 927.47 Recalculate the price assuming the bond matures in a year