QUESTION $3$

Rotten Manufacturing has just issued a $25-$year, $19\%$ coupon interest rate, $$1,000-$par bond that pays interest annually. The required return is currently $14\%,$ and the company is certain it will remain at $14\%$ until the bond matures in $25$ years. Assuming that the required return does remain at $14\%$ until maturity, find the value of the bond now. What will be the price of the bond after $5$ years have passed? What will be the price after $12$ years have passed? What trend do you see?