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(Bond valuation relationships) Stanjey, Ine, issues 10 -year $1,000 bonds that pay $60 annieally. The market price for the bonds is $936. The inarket's required

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(Bond valuation relationships) Stanjey, Ine, issues 10 -year $1,000 bonds that pay $60 annieally. The market price for the bonds is $936. The inarket's required yipld to maturity-on a comparable-risk bond is 9 percent. a. What is the value of the bond to you? b. What happens to the value it the market's required yield to matuity on a comparablo-tisk bord (0) increases to 13 percent or (ii) decreases io 7 percent? c. Under which of the circumstances in part b should you purchase the bond? a. What is the value of the bond it the market's required yield to maturity on a comparable-risk bond is 9 percent? (Round to the nearest cant.) b. (0) What is the value of the bond it the market's required yiold to maturity on a corrparable-risk bond increases to 13 porcent? (found to the nearest cent.) b. (ii) What is the value of the bond if the markers roquired yield to maturity on a comparable-risk bond decreases to 7 percent? (Round to the nearest cent.) (Bond valuation relationships) Stanley, Inc, issues 10 -year $1,000 bonds that pay $60 annualiy. to maturity.on a comparable-risk bond is 9 percent. a. What is the value of the bond to you? b. What happens to the value if the market's required yield to maturity on a comparable-risk bond (i) increases to 13 percent or (ii) decreases to 7 perce c. Under which of the circumstances in part b should you purchase the bond? b. (i) What is the value of the bond if the market's required yield to maturity on a comparable-risk boridd increases to 13 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 decreases to 7 percent? (Round to the nearest cent.) c. Under which of the circumstances in part (b) should you purchase the bond? (Select from the drop-down menus.) If the yield to maturity on a comparable-risk bond you purchase the Stanley bonds at the current mairket price of $936

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