Bond prices and maturity dates. Moore Company is about to issue a bond with annual coupon payments, an annual coupon rate of $5\%,$ and a par value of $$1,000.$ 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.$)$

A$.$ As the time to maturity increases, the price of the bond increases.