A bond of ABC Corp. pays $100.00 in annual interest, with a $1,000.00 par value. The bonds mature in 30 years. The markets 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%. $_________.
b)What is the value of the bond if the market's required yield to maturity on a comparable risk bond increases to 14%. $_________ and if bonds required yield to maturity decreases to 4%.$______.