(Bond valuation relationships) Arizona Public Utilities issued a bond that pays $60 in interest, with a $1,000 par value. It matures in 20 years. The market's required yield to maturity on a comparable-risk bond is 7 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 (1) increases to 11 percent or (ii) decreases to 6 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 15 years instead of 20 years. Recompute your answers in parts a and b e. Explain the implications of your answers in part d as they relate to interest-rate risk, premium bonds, and discount bonds (Bond valuation relationships) Arizona Public Utilities issued a bond that pays $60 in interest, with a $1,000 par value. It matures in 20 years. The market's required yield to maturity on a comparable-risk bond is 7 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 (1) increases to 11 percent or (ii) decreases to 6 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 15 years instead of 20 years. Recompute your answers in parts a and b. e. Explain the implications of your answers in part d as they relate to interest-rate risk, premium bonds, and discount bonds a. What is the value of the bond if the market's required yield to maturity on a comparable-risk bond is 7 percent