(Related to Checkpoint 9.3) (Bond valuation relationships) You own a bond that pays $110 in annual interest with a $1,000 par value. It matures in 10 years. The market's required yield to maturity on a comparable-risk bond is 12 percent a. Calculate the value of the bond b. How does the value change if the yield to maturity on a comparable-risk bond (1) increases to 15 percent or (11) 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 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 a. What is the value of the bond if the market's required yield to maturity on a comparable-risk bond is 12 percent? (Round to the nearest cent) 5