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Bond A has exactly 5 years to maturity, and bond B has 15 years to maturity. a. Calculate the present value of bond A if

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Bond A has exactly 5 years to maturity, and bond B has 15 years to maturity. a. Calculate the present value of bond A if the required rate of return is: (1) 6%, (2) 9%, and (3) 12%. b. Calculate the present value of bond B if the required rate of return is: (1) 6%,(2)9%, and (3) 12%. c. From your findings in parts a and b, discuss the relationship between time to maturity and changing required returns. d. If Lynn wanted to minimize interest rate risk, which bond should she purchase? Why? a. (1) The value of bond A, if the required return is 6%, is $ (Round to the nearest cent.)

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