Graph$/$chartBond value and time$-$Constant required returns Pecos Manufacturing has just issued a $15-$year, $15\%$ coupon Graph$/$chart

interest rate, $$1,000-$par bond that pays interest annually. The required return is currently $14\%,$ and the company is

certain it will remain at $14\%$ until the bond matures in $15$ years.

a$.$ Assuming that the required return does remain at $14\%$ 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 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:

a$.(1)$ The value of the bond with $15$ years to maturity is $$.($Round to the nearest cent.$)$

B$.$ What is the value of the bond with the rest of the years to maturity $$.$