1010

Bond prices and maturity dates. Les Company is about to issue a bond with quarterly coupon payments, an annual Contate of 8%, and a Dar value of $5,000. The yield to maturity for this bond is 6% a. What is the price of the bond if it matures in 5, 10, 15, or 20 years? b. What do you notice about the price of the bond in relationship to the maturity of the bond? a. What is the price of the bond if it matures in 5 years? $(Round to the nearest cent) What is the price of the bond if it matures in 10 years? $(Round to the nearest cent) What is the price of the bond if it matures in 15 years? $(Round to the nearest cent) What is the price of the bond if it matures in 20 years? (Round to the nearest cent) $ b. What do you notice about the price of the bond in relationship to the maturity of the bond? (Select the best response) O A. As the time to maturity increases, the price of the bond decreases first and then increases OB. As the time to maturity increases, the price of the bond decreases c. As the time to maturity increases the price of the bond increases first and then decreases O D. As the time to maturity increases, the price of the bond increases