(Bond valuation relationships) A bond of Telink Corporation pays $110 in annual interest, with a $1,000 par value. The bonds mature in 25 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 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 10 percent? $(Round to the nearest cent.) b.) 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. () 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.) i by 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 contrast, an increase in interest rates will cause the value to V. (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 V: and is less than the bond's coupon rate, the bond will sell at V. (Select from the drop-down menus.)