You own a bond that pays $110 in annual interest, with a $1,000 par value. It matures in 15 years. The masters required yield to maturity on a comparable risk bond is a. Calculate the value of the bond b. How does the value change if the yield to maturity on a comparable-risk bond (i) increases to 16 percent or (ii) decreases to percent? c Explain the implications of your answers in part b as they reliance to interest-rate risk premium bonds, and discount bonds. d. Assume that the bond matures years instead of 15 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 market's required yield to maturity on a comparable-risk bond is 10 percent? $ (Round to the nearest cent) b (i) what is the value of the bond if the yield to maturity on a comparable risk bond increases to 16 percent? $ (Round to the nearest cent) b (ii) What is value of the bond if the yield to maturity on a comparable-risk bond decreases to percent? $ (Round to the nearest cent) e. The change in the value of a bond caused by changing interest rates is called 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 increase an increase in interest rates will cause the value to decrease. (Select from the drop-down merits) Also, based on the answers in part b, if the yield to maturity (current interest rate) equals the coupon interest rate, the bond will sell at exceeds the bond's coupon rate, the bond will sell at is less than the bond's coupon rate, the bond will set select from the drop-down menus.)