(Bond valuation) You own a bond that pays $120 in annual interest, with a $1,000 par value. It matures in 15 years. Your required rate af return is 10 percart. a. Calculate the value of the bond. b. How does the value change if your required rate of roturn (1) incroases to 16 porcont or (2) decreases to 8 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 4 years instead of 15 years. Recompute your answers in part b e. Explain the implications of your answers in part d as they relate to interest rate risk, premium bonds, and discount bonds. a. If your required rate of return is 10 peroent, what is the valuo of the bond? (FRound to the nearest cent.)