Bond value and time$-$Changing required returns Personal Finance Problem Lynn Parsons is considering investing in either of two outstanding bonds. The bonds both have $\backslash (\backslash$$ $1,000\backslash )$ par values and $\backslash (14\backslash \%\backslash )$ coupon interest rates and pay annual interest. Bond $\backslash ($ A $\backslash )$ has exactly $9$ years to maturity, and bond $\backslash ($ B $\backslash )$ has $19$ years to maturity.

a$.$ Calculate the present value of bond $\backslash ($ A $\backslash )$ if the required rate of return is: $(1)\backslash (11\backslash \%\backslash ),(2)\backslash (14\backslash \%\backslash ),$ and $(3)\backslash (17\backslash \%\backslash ).$

b$.$ Calculate the present value of bond B if the required rate of return is: $(1)\backslash (11\backslash \%\backslash ),(2)\backslash (14\backslash \%\backslash ),$ and $(3)\backslash (17\backslash \%\backslash ).$

c$.$ From your findings in parts a and $\backslash (\backslash$mathbf$\{$b$\}\backslash ),$ 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 $\backslash ($ A $\backslash ),$ if the required return is $\backslash (11\backslash \%\backslash ),$ is $\backslash (\backslash$$ $1,166\mathrm{.}11\backslash ).($Round to the nearest cent.$)$

$(2)$ The value of bond A $,$ if the required return is $\backslash (14\backslash \%\backslash ),$ is $\backslash (\backslash$$ $\backslash )($Round to the nearest cent.$)$