Bond value and time - Constant required returns Pecos Manufacturing has just issued a 15 -year, 14% coupon inferest rate, $1,000-par bond that pays inserest annualy. The required refurn is currenty 13%, and the company is certain it wil remain at 13% untl the bond matures in 15 years a. Assuming that the required retum does remain at 13% unti maturity, find the value of the bond with (1) 15 years, (2) 12 years, (3) 9 years, (4) 6 years, (5) 3 years. (6) 1 year fo maturity. b. All else remaining the same, when the required tetum differs from the coupon interest rate and is assumed to be constant to maturity, what happens to the bond vaiue as time moves toward maturity? Explain in fight of the following graph: (2) The value of the bond with 12 years to motusity is (Round to the nearest cent) (3) The value of the bond weth 9 years to matunty is $ (Round to the nearest cert) (4) The value of the bond with 6 years to maturity is $ (Round to the nearest cont) (5) The value of the bond with 3 years to maturity is (Round to the nearest cent) (6) The value of the bond with 1 year to maturity is 1 (Round to the nearest cent) b. All else remaining the same, when the required ratum differs from the coupon interest rate and is assumed to be constant to maturit, what happens to the bond value as the moves toward maturity? (Select the best answer below) A. The bond value approaches the par value. B. The bond value approaches interity. c. The bond value approaches zero. D. The bond value approaches the amount of the last interest payment Bond Value (\$)