Homework: Chapter 9 Homework save Score: 0.8 of 1 pt 5 of 7(7 complete) HW Score: 97.14%, 6.8 of 7 pts P9-22 (similar to) Question Help 6 7 8 9 (Bond valuation relationships) Stanley, Inc. issues 15-year $1.000 bonds that pay $85 annually. The market price for the bonds is 51,043. The market's required yield to maturity on a comparable-risk bond is 8 percent. a. What is the value of the bond to you? b. What happens to the value if the market's required yield to maturity on a comparable-risk bond increases to 11 percent or (I) decreases to 6 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 is 8 percent? $ 1042.80 (Round to the nearest cent.) b. () What is the value of the bond if the market's required yield to maturity on a comparable-risk bond increases to 11 percent? 5 820 23 (Round to the nearest cent) b. () What is the value of the bond if the market's required yield to maturity on a comparable-risk band decreases to 6 percent? $ 1242.81 (Round to the nearest cent.) c. Under which of the circumstances in part (b) should you purchase the bond? (Select frd the drop-down menus) If the yield to maturity on a comparable-risk bond you purchase the Stanley bonds at the current market price of $1,043 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 increases to 11% decreases to 6% Click to select your answer(s) and then click Check