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Bond prices and maturity dates . Les Company is about to issue a bond with semiannual coupon payments, an annual coupon rate of 66%, and

Bond prices and maturity

dates. Les Company is about to issue a bond with semiannual coupon payments, an annual coupon rate of 66%,

and a par value of $1,000. The yield to maturity for this bond is 55%.

a.What is the price of the bond if it matures in 15, 20, 25, or 30 years?

b.What do you notice about the price of the bond in relationship to the maturity of the bond?

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