(Bond valuation relationships) A bond of Telink Corporation pays $110 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 8 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 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 8 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 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 4 percent? ? (Round to the nearest cent.) c. The change in the value of a bond caused by changina 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 (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 sell at and is less than the bond's coupon rate, the bond will sell at (Select from the drop-down menus.)