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 14% coupon interest rates and pay annual interest Bond A has exactly 6 years to maturity, and bond B has 16 years to matunty a. Calculate the present value of bond A if the required rate of return is: (1) 11%, (2) 14%, and (3) 17% b. Calculate the present value of hond if the required rate of return is: (1) 11%, (2) 14% and (3) 17% 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 11%, is (Round to the nearest cent.) (2) The value of bond A, if the required return is 14%, is $. (Round to the nearest cent.) (3) The value of bond A if the required return is 17% is $(Round to the nearest cent.) b. (1) The value of bond B. if the required retum is 11%, is $ (Round to the nearest cent.) (2) The value of bond B if the required return is 14% is $(Round to the nearest cent) (3) The value of bond B, if the required return is 17% is $. (Round to the nearest cent.) c. From your findings in parts a and b, discuss the relationship between time to maturity and changing required retums The greater the length of time to maturity, the responsive the market value of the bond is to changing required returns, and vice versa. (Select from the drop-down menus) d. If Lynn wanted to minimize interest rate risk, which bond should she purchase? Why? (Select the best answer below)