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( Bond valuation relationshlips ) Aryons Public Urifies iswued a bond that poys $ 8 0 in interest, wich a $ 1 , 0 0

(Bond valuation relationshlips) Aryons Public Urifies iswued a bond that poys $80 in interest, wich a $1,000 par value. It matires in 25 years. The markers requined yeld to muturity on a comparatlo-rist bond is 7 percert
a: Calculate the value of the bond.
b. How does the value change it Be markets required yield to maturty on a comparable-tisk bond (i) incteases to 10 percent or (9) decreases to 6 percent?
c. Explain the implications of your answers in pat b as they relate to interest-rate risk premium bonds, and divcount bonds.
d. Assume that the bond matures in 5 yearn instead of 25 years. Recompule your answers in parts a and b.
e. Explain the implications of your answers in part d as they relate lo inferest-eate rak, premium bonds, and dscount bonds.
a. What is the value of the bond if the markers required yeid to maturity on a comparable risk bend is 7 pereent?
$1.116.54(Round to the nearest cent.)
b.(i) What is the value of the bond it the markers required yeld to maturty in a comparable-tisk bond incremes to 10 percent?
51229.40(Round to the nearest cent)
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