Bond value and time Changing required returns Personal Finance Problem tynn Parsons is considering investing in other of two outstanding borids. The bonds both have som Bond A has exactly 6 yours to maturity, and bond B has 16 years to maturity a. Calculate the present value of bond All the required rate of return is: (1) 8%. (2) 11% and (3) 14% b. Calculate the present value of bond the required rate of return is: (1) 8% (2) 11%, and (3) 14% e. From your findings in parts and discuss the relationship between time to maturity and changing required returns d. It Lynn wanted to minimize Interest rate risk, which bond should she purchase? Why? .. (1) The value of bond Ait the required return is 8%, is (Round to the nearest com) monal Finance Problem Lynn Parsons in comidering Investing in other of two outstanding bonds. The bonds both have $1.000 per values and 118 coupons interest rates and pay www wont years to maturity te of return is (1) 8%, (2) 115, and (3) 14% te of retumis (1)8% (2) 11% and (3) 14% nship between time to matury and changing required for id should she purchase? Why? C (Round to the nearest cent) Bond value and time--Changing required returns Personal Finance Problem Lynn Parsons is considering investing in either of two outstar Bond Ahas exactly 6 years to maturity, and bond B has 16 years to maturity a. Calculate the present value of bond A if the required rate of return is: (1) 8%, (2) 11%, and (3) 14% b. Calculate the present value of bond B if the required rate of return is: (1) 8%, (2) 11%, and (3) 14% 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. W the required retum is 8%, is $ (Round to the nearest cent.)