FSU Manufacturing has just issued a 15-year, 11% coupon interest rate, $1,000-par bond that pays interestannually. The required return is currently 16%, and the company is certain it will remain at 16% until the bond matures in 15 years.

a. Assuming that the required return does remain at 16% until maturity, find the value of the bond with (1) 15 years, (2) 12 years, (3) 9 years, (4) 6 years, (5) 3 years, (6) 1 year to maturity.

(1) The value of the bond with 15 years to maturity is $. ? (Round to two decimal places.)

(2) The value of the bond with 12 years to maturity is $. ? (Round to two decimal places.)

(3) The value of the bond with 9 years to maturity is $. ? (Round to two decimal places.)

(4) The value of the bond with 6 years to maturity is $. ? (Round to two decimal places.)

(5) The value of the bond with 3 years to maturity is $. ? (Round to two decimal places.)

(6) The value of the bond with 1 year to maturity is $. ? (Round to two decimal places.)

b. All else remaining the same, when the required return differs from the coupon interest rate and is assumed to be constant to maturity, what happens to the bond value as time moves toward maturity?

The bond value approaches (Enter one of the following: 'zero', 'the par value', 'infinity', 'the amount of the last interest payment'). Make sure to spell the answer correctly.