Bond value and timelong dash Constant required returns???Pecos Manufacturing has just issued a 15 ?-year, 15...

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Bond value and timelong dash Constant required returns???PecosManufacturing has just issued a 15 ?-year, 15 ?% coupon interest?rate, ?$1000 ?-par bond that pays interest annually.??The requiredreturn is currently 14 ?%, and the company is certain it willremain at 14 ?% until the bond matures in 15 years. a.??Assumingthat the required return does remain at 14 ?% until? maturity, findthe 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. b.??Allelse remaining the? same, when the required return differs from thecoupon interest rate and is assumed to be constant to? maturity,what happens to the bond value as time moves toward? maturity?Explain in light of the following? graph:

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Bond value and timelong dash Constant required returns???PecosManufacturing has just issued a 15 ?-year, 15 ?% coupon interest?rate, ?$1000 ?-par bond that pays interest annually.??The requiredreturn is currently 14 ?%, and the company is certain it willremain at 14 ?% until the bond matures in 15 years. a.??Assumingthat the required return does remain at 14 ?% until? maturity, findthe 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. b.??Allelse remaining the? same, when the required return differs from thecoupon interest rate and is assumed to be constant to? maturity,what happens to the bond value as time moves toward? maturity?Explain in light of the following? graph: