$($Bond valuation relationships$)$ Arizona Public Utilities issued a bond

that pays $$70$ in interest, with a $$1,000$ par value. It matures in $30$

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 $11$ percent or $($ii$)$ decreases

to $7$ percent?

c$.$ Explain the implications of your answers in part $b$ as they relate

to interest$-$rate risk, premium bonds, and discount bonds.

d$.$ Assume that the bond matures in $10$ years instead of $30$ years.

Recompute your answers in parts a and $b.$

e$.$ Explain the implications of your answers in part $d$ as they relate