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 $8\%$ 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: $(1)5\%,(2)8\%,$ and $(3)11\%.$

b$.$ Calculate the present value of bond $B$ if the required rate of return is: $(1)5\%,(2)8\%,$ and $(3)11\%.$

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 $5\%,$ is $

$($Round to the nearest cent.$)$