0-1/ (similar to) Bond value and changing required returns Midland Uflities has a bond issue outstanding that will mature to its $1,000 par value in 14 years. The bond has a coupon Interest rate of 14% and pays interest annually a. Find the value of the bond the required return is (1) 14%. (2) 18%, and (3) 11% b. Use your finding in part a and the graph here. I to discuss the relationship between the coupon interest rate on a bond and the required return and the market value of the band relative to its par value c. What two possible reasons could cause the required return to differ from the coupon interest rate? .. (1) The value of the bond, the required retum is 14%, is (Round to the nearest cont.) Graph Chart Bond Value 100 1.400 1500 1.2004 1,100 100 500 800 700 500 500 11 12 13 14 15 16 17 18 Required return (% Print Done