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Eond value and time-Constant required rotums Pecos Manutacturing has just issued a 15 -year, 13% coupon infecest rate, $1, 000-par bond that pays interest anruady.

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Eond value and time-Constant required rotums Pecos Manutacturing has just issued a 15 -year, 13% coupon infecest rate, $1, 000-par bond that pays interest anruady. The required retum is curently 18% and the company is certain it wil remain at 16% untl the bond matures in 15 years. a. Assuming that the required retum does remain at 18% unbi maturdy, frid the value of the bond with (1) 15 yoars, (2) 12 years, (3) a years, (4) 6 years, (5) 3 years, (6) 1 year fo matunty b. Ali blse equal, when the required retuen dflors Goen the coupon rote and is constant to maturity, what happers to the bond value as time posses? Explain in light of the following graph. 4. (1) The value of the bond with 15 years to moturity is (Roond to the nearest cent) (2) The value of the bond with 12 years to maturly is 3 (Round to the nearest cent) (3) The value of the bond with 9 years io matunty is 1 (Round to the nearest cent) (4) The value of thn bond weth years to maturity is (Round to the nearevt cent) (5) The value of the bond with a years to maturty is (Rooris to the neareat cent) (0) The value of the bond with 1 yoar to maturity is 1 (Pound to the nearest cert) loward mating? (Seloct the beut anserer betowe) A. The bond valive approschat the ambunt of ite laut interest poyment B. The bond valun opgreches infrity c. The bond value approaches the par value. D. The bone valie approaches zaro that the required return does remain at 18% until maturity, find the value of the bond with (1) 15 years, (2) 12 years, (3) 9 years, (4) 6 year qual, when the requined returndiffers from the counon rate. and is constant to maturity what hannans to the hond yalue as time passes? Graph/chart of the bor of the bor of the bor of the bor of the bor maturity, what happens t ond value approaches intinity. ond value approaches the par value

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