A bond issued by Midland Utilities will mature in 14 years with a par value of $51,000 and an annual coupon interest rate of 5%. The value of the bond is calculated for required returns of 9%, 13%, and 6%. The relationship between the coupon rate, required return, and market value relative to par value is examined. Reasons the required return could differ from the coupon rate include changes in market interest rates and changes in the risk of the bond.