A bond of Visador corporation pays $90 in annual interest, with a $1000 par value. The bonds mature in 18 years. The market's required yield to maturity on a comparable-risk bond is 7.5 percent.

A. Calculate the value of the bond.

B. How does the value change if the market's required yield to maturity on a comparable0risk bond (i) increases to 13 percent or (ii) decreases to 4 percent?

C. Interpret your findings in parts a and b.