(Bond valuation relationships) A bond of Telink Corporation pays $100 in annual interest, with a $1,000 par value. The bonds mature in 10 years. The market's required yield to maturity on a comparable-risk bond is 9 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 13 percent or (ii) decreases to 4 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 9 percent? (Round to the nearest cent.) b.(i) What is the value of the bond if the market's required yield to maturity on a comparable risk bond increases to 13 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 4 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 ; and exceeds the bond's coupon rate, the bond will sell at is less than the bond's coupon rate, the bond will sell at (Select from the drop-down menus.)