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 $$1,000$ par values and $9\%$ coupon interest rates and pay annual interest. Bond A has exactly $8$ years to maturity, and bond $B$ has $18$ 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?