Fan 1/Test Bond vacation You own a bond that pays $120 in annual interest with a $1.000 par valuo It matures in 10 years. Your required rate of return is 1 peront a. Calculate the value of the bond b. How does the value change if your required rate of retum (1) increases to 15 percent or (2) decreases to 8 percent? c. Explain the implications of your answers in part as they relate to interest rate risk premium bonds, and discount bonds d. Assume that the bond matures in 5 years intoad of 10 years Rocompute your answers in portb e. Explain the implications of your answers in part des they relate to interest rate risk, premium bonds, and discount bonds a. If your required rate of return is 11 percent, what is the value of the bond? $ Round to the nearest cont