Annie Hegg has been considering investing in either of two outstanding bonds. Both bonds have $5000 par values and 10% coupon interest rates, and both pay interest semiannually. Bond A has exactly 15 years to maturity, while bond B was settled on Jan. 20, 2010 with redemption date on Nov. 20, 2024. (Use acutal ACT day-count method).

1. Calculate the value of bond A if the required return is (1) 7%, (2) 10% and (3) 13%.

2. Calculate the value of bond B if the required return is (1) 7%, (2) 10% and (3) 13%.

3. If Annie wanted to minimize maturity risk, which bond should she purchase? Please explain.