Bond value and time Constant required returns Pecos Manufacturing has Just issued a 15-year, 9% coupon interest rate, $1,000 par bond that pays interest annual y The required return is currently 12%, and the company is certain it will remain at 12% until the bond matures in 15 years. a Assuming that the required return does remain at 12% un i maturity. find the value of the bond with (1) 15 years. 212 years, (3) 9 years 4 6 years, (5) 3 years 6 1 year to maturity. b. All else remaining the same, when the required return differs from the coupon interest rate and is assumed to be constant to maturity, what happens to the bond value as time moves toward maturity? Explain in light of the following graph: Graph/Chart a. (1) The value of the bond with 15 years to maturity is (Round to the nearest cent) 1,200 1,000 700 600 500 15 Years to Maturity