9-18. (Applying bond valuation relationships) (Related to Checkpoint 9.3 on page 270) You own a bond that pays $100 in annual interest, with a $1,000 par value. It matures in 15 years. The market's required yield to maturity on a comparable-risk bond is 12 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 15 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 5 years instead of 15 years, and recalculate your answers in part b. e. Explain the implications of your answers in part d as they relate to interest-rate risk, premium bonds, and discount bonds.