You own a bond that pays $100 in annual interest, with a $1000 par value. It matures in 9 years. The markets required yield to maturity on a comparable risk bond is 15%.

A- Calculate the value of the bond.

B- How does the value change if the yield to maturity on a comparable risk bond increase to 17% or decreases to 8%?

C- Explain the implications of your answer in part B as they relate to interest rate risk, premium bonds, and discount bonds.