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Related to Checkpoint.) Bond valuation relationships) You can a bond that pays $100 in annual rest, with a $1,000 par valuitmatures in 15 years. The

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Related to Checkpoint.) Bond valuation relationships) You can a bond that pays $100 in annual rest, with a $1,000 par valuitmatures in 15 years. The market's required yuld to maturity on a comparable bond is 12 percent Calculate the value of the bond How does the value change if the yield to mainty on a comparatisk bord increases to 15 percentar ) decreases to a percent? . Explain the implications of your answers in part as they relate to interestis, premium bonds, and discount bonds d. Assume that the bond matures in 5 years instead of 15 years and close your answers in parts and . Explain the implications of your answers in part d as they relate to read ik premium bonds, and discount bonds 2. What is the value of the bond the market's required yield to many on a comparable-risk bond is 12 percent Round to the newest cent) b.) What is the value of the bond if the yield tomaty on a comparatterisk band increases to 15 percent? Round to the nearestent) b.) What is the value of the bond the yield to maturity on a comparable-risk bord decreases to percent? Round to the nearestent) c. The change in the value of a bond caused by changing interest rates is called interest rate risk Based on the answers in partb. a decrease in interest rates the yield to maturity will cause the value of a bond to by contrast, an increase in states will cause the value to (Select from the drop-down menus) Also, based on the wes in partithe yeld to maturity fourrent interest rate) increase the coupon interest rate the bond will be unchanged exceeds the band's on the bond will and decrease is less than the band's upon the band will Select from the menus Assume the bond matures in 5 years of 15 years, what is the value of the to matury on comparable bond is 12 percent? found to the nearest cant) Assume the band matures in 5 years instead of 15 years what is the value of the bond yed to maturity on a combina bond is 15 percent? Assume the band matures in 5 years inad of 15 yow what is value of the bonde yold to matury on a comparabrisk band is percent? Mund to the newest) . From the findings in atd. we can conclude the bondholder sering a long-term bond is 16 one cigaretende Enter your answer in each of the answer boxes A Start a search O i a

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