Miceso cel Selected bond eees 18119 Asbt Vet Da Rear Doefe oe pigna oua ta Anihva Autesm Reenar 2 fomar tartete Gemer Cal Odena ate farm ese acoma t ceda Derfemte Est de te Cemay NKS Mnar Ceise fu A149 H G D A B nel 1000 145 FV 146 Rate 5% 941,55 942.14 147 PV 148 PV Annual pmt ? 149 7-14.(Bnd valuation) You own a bond that pays $70 in annual interest, with a $1,000 par value. It matures in 15 years. Your required rate of return is 7 percent a. Caleulate the value of the hond h. How does the valne change if your required rate of return (1) increases to 9 percent or (2) decreases to 5 percent? c. Explain the implications of your answers in part (b) as they relate to interest rate risk, pre- mium bonds, and discount honds d. Assume that the bond matares in s years instead of 15 years. Recompute your answers in 150 ays.com.qa 151 152 153 154 155 156 157 158 159 part (b) e. Explain the implications of your answers in part (d) as they relate to interest rate risk, pre- mium bonds, and discount bonds. 100 161 162 163 164 Pmt 70 265 FV 1000