:$$ Rogers & Zinke, Inc. issues a $10-$year $$1,000$ bond that pays $$28\mathrm{.}00$ semi$-$annually.$$ The market price for the bond is $$950.$ The market's required yield to maturity on a comparable$-$risk bond is $6$ percent.$$

a$.$ What is the value of the bond to you?.

b$.$ What happens to the value if the market's yield to maturity on a comparable$-$risk bond $($i$)$ increases to $7$ percent or $($ii$)$ decreases to $5$ percent?

c$.$ Under which of the circumstances in parts a & b should you purchase the bond?