Here are data on $$1,000$ par value bonds issued by Microsoft, GE Capital, and Morgan Stanley at the end of $2020.$ Assume you are thinking about buying these honds

$.$ Answer the following questions:

Assuming the interest is paid annually, calculate the values of the bonds if your required rates of return of Microsoft, GE Capital, and Morgan Stanley are $6\%,8\%,$ and $10\%,$ respectively. In addition, the information on coupon rates and maturity is given in the following table.

$\backslash$table$[[,$Microsoft,GE capital,Morgan Stanley,$],[$Coupon rate,$7\mathrm{.}25\%,4\mathrm{.}25\%,4\mathrm{.}75\%,],[$Maturity$,30,10,5,]]$

At the end of $2020,$ the bond prices are as follows:

a$.$ Microsoft $$1,100$

b$.$ GE Capital $$1,030$

c$.$ Morgan Stanley $$1,015$

What were the expected rates of return for each bond?

Identify which bonds are premium bonds and which bonds are discount bonds $($this can be determined by comparing the intrinsic value to the par value or by comparing the investors' required rate of return to the coupon rate.$)$

Estimate the value of the bond if your required rate of return $(1)$ increased $2$ percentage points or decreased $2$ percentage points? What conclusions can you get?

Should you buy these bonds? Explain.