A bond of Visador Corporation pays $80 in annual interest, with a $1,000 par value. The bonds mature in 17 years. The market's required yield to maturity on a comparable-risk bond is 9.5 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 12 percent or (ii) decreases to 5 percent?

c. Interpret your finding in parts a and b.