$($Bond valuation relationships$)$ A bond of Telink Corporation pays $$110$ in annual interest, with a $$1,000$ par value. The bonds mature in $20$ years. The market's required yield to maturity on a comparable$-$risk bond is $10$ 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 $14$ percent or $($ii$)$ decreases to $8$ percent?

c$.$ Interpret your findings in parts a and $b.$

a$.$ What is the value of the bond if the market's required yield to maturity on a comparable$-$risk bond is $10$ percent?

$ $($Round to the nearest cent.$)$

b$.(1)$ What is the value of the bond if the market's required yield to maturity on a comparable risk bond increases to $14$ percent?

$ $($Round to the nearest cent.$)$

b$.($ii$)$ What is the value of the bond if the market's required yield to maturity on a comparable risk bond decreases to $6$ percent?

$ $($Round to the nearest cent.$)$

c$.$ The change in the value of a bond caused by changing interest rates is called interest$-$rate risk. Based on the answers in part b$,$ a decrease in interest rates $($the yield to maturity$)$ will cause the value of a bond to

: by contrast, an increase in interest rates will cause the value to

$($Select from the drop$-$down menus.$)$

Also, based on the answers in part $b,$ if the yield to maturity $($current interest rate$)$:

equals the coupon interest rate, the bond will sell at

exceeds the bond's coupon rate, the bond will $s=l$ at

; and

is less than the bond's coupon rate, the bond will sell at

$($Select from the drop$-$down menus.$)$