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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 $ in interest, wich a $ par value. It matires in years. The markers requined yeld to muturity on a comparatlorist bond is percert
a: Calculate the value of the bond.
b How does the value change it Be markets required yield to maturty on a comparabletisk bond i incteases to percent or decreases to percent?
c Explain the implications of your answers in pat b as they relate to interestrate risk premium bonds, and divcount bonds.
d Assume that the bond matures in yearn instead of years. Recompule your answers in parts a and b
e Explain the implications of your answers in part d as they relate lo inferesteate 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 pereent?
$Round to the nearest cent.
bi What is the value of the bond it the markers required yeld to maturty in a comparabletisk bond incremes to percent?
Round to the nearest cent
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