(Bond valuation relationships) Stanley, Inc. issues 15-year $1,000 bonds that pay $85 annually. The market price for the bonds is $1,137. The marker's required yield to maturity on a comparable risk bond is 7 percent a. What is the value of the bood to you? b. What happens to the value if the market's required yield to maturity on a comparable-risk bond (1) increases to 13 percent or (i) decreases to 5 percent? c. Under which of the circumstances in part b should you purchase the bond? a. What is the value of the bond if the market's required yield to maturity on a comparable risk bond in 7 percent? (Round to the nearest cent.)