Bond value and time$$Constant required returns$$Pecos Manufacturing has just issued a $15-$year, $11\%$ coupon

interest$$ rate, $$$$1,000-$par bond that pays interest annually.The

required return is currently$16\%,$ and the company is certain it

will remain at $16\%$ until the bond matures in $15$ years.a$.$Assuming that the required return does remain at $16\%$ until$$

maturity, find the value of the bond with$(1)15$years$,(2)12$

years, $(3)9$ years, $(4)6$ years, $(5)3$ years, $(6)1$ 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$$ graph:$$