(Related to Checkpoint 5.3) (Bond valuation relationships) You own a bond that pays $110 in annual is, with a $1,000 par value. It matures in 10 years. The market's required ywd to maturity on a comparable-risk band in 10 percent. Calculate the value of the bond How does the value change if the yield to maturity on a comparable-risk bond increases to 16 percent or (4) decreases to 8 percent? Explain the implications of your answers in part b as they relate to interest rate risk premium bonds, and discount bonds. Assume that the bond matures in 5 years instead of 10 years and recalculate your answers in parts a and b e. Explain the implications of your answers in part d as they relate to interest-rate risk, premium bonds, and discount bonds. a. What is the value of the bond if the markets required yield to maturity on a comparable-risk bond is 10 percent? (Round to the nearest cent) What is the value of the bond if the yield to maturity on a comparable-risk bond increases to 18 percent (Round to the nearest cant) What is the value of the bond if the yield to maturity on a comparatie-risk tond decreases to 8 percent (Round to the nearest cent) 6. The change in the value of a bend caused by changing interest rates is cated interest rate risk. Based on the answers in part b, a decrease in interest rates the yield to maturity) will cause the value of a bond to an increase in interest rates will cause the value to (Select from the drop-down menus.) Also, based on the answers in part b, if the yield to maturity (current state) equals the coupon interest rate, the bond will set at exceeds the bond's coupon rate the bond will sell at and is less than the band's coupon rate, the bond will sel at (Select from the drop-down menus.) Assume the bond matures in 5 years instead of 10 years, what is the value of the bond if the yield to maturity on a comparable risk bond is 10 percent (Round to the nearest cent) by contrast