Bond valuation relationship: a bond of Telink Corp. pays $100 in annual interest, with a $1,000 pay value. The bonds mature in 10 years. The market's required yield to maturity on a comparable risk bond is 9%.
A what is the value of the bond if the market's required yield to maturity on a comparable risk bond is 9%? $_____ (round to the nearest cent)
1. what is the value of the bond if the market's required yield to maturity on a comparable risk bond increases to 14%? $_____ (round to the nearest cent)
2. what is the value of the bond if the market's required yield to maturity on a comparable risk bond decreases to 5% $_____ (round to the nearest cent)