(Bond valuation relationships) Arizona Public Utilities issued a bond that pays $80 in interest, with a $1,000 par value.It matures in 25 years.The market's required yield to maturity on a comparable-risk bond is 6 percent.

(Bond valuation relationships) Arizona Public Utilities issued a bond that pays $80 in interest, with a $1,000 par value. It matures in 25 years. The market's required yield to maturity on a comparable-risk bond is 6 percent. Calculate the value of the bond. How does the value change if the market's required yield to maturity on a comparable-risk bond (i) increases to 10 percent or (ii) decreases to 5 percent? Explain the implications of your answers in part b as they relate to interestrate risk, premium bonds, and discount bonds. Assume that the bond matures in 10 years instead of 25 years. Recompute your answers in parts a and b. Explain the implications of your answers in part d as they relate to interest-rate risk, premium bonds, and discount bonds. sup-9?.\