Bond value and time constant required returns Pecos Manufacturing has just issued a 15-year, 16% coupon Interest rate 51.000 par bond that pays interest annually. The required return is currently 13%, and the company is certain it will remain at 13% until the bond matures in 15 years a. Assuming that the required return does remain at 13% until maturity, find the value of the bond with (1) 15 years, (2) 12 years. (3) 9 years (4) 6 years, (5) 3 years (6) year to maturity b. All else equal when the required return differs from the coupon rate and is constant to maturity, what happens to the bond value as time passes? Explain in light of the following graph: D Graph/Chart 1,300 1,200- 1,100- 1,000- Bond Value ($) 900- 800- 700- 600- 500- Print Done m. (t) The value of the bond with 15 years to matury Hound town) (2) The value of the bond with 12 yastys Round to the cont The value of the bond win years to maturty is send Round to the corrector) (4) The value of the bond with yours to maturity is to the (5) The value of the bond with 3 years touris Round to con 10) The of the bond with you to mais Round to the h. Als remaining the same, when it from the to be with OA. The bond proaches OB. The bond value crochet OC The bond ladies the amount of the OD. The bond rhes par valors Windows