Here are data on $$1,000$ par value bonds issued by Microsoft, GE Capital, and Morgan Stanley. Assume you are thinking about buying these bonds. Answer the following questions

b$.$ The bonds are selling for the following amounts

Microsoft: $$1,368$

GE capital: $$824$

Morgan Stanley: $$863$

MICROSOFT, GE CAPITAL,MORGAN STANLEY$],[$Coupon interest rate: $6\mathrm{.}50\%,5\mathrm{.}50\%,6\mathrm{.}00\%$

What are the expected rates of return for each bond?

C$.$ How would the value of the bonds change if $(1)$ your required rate of return $($rb$)$ increased $2$ percentage points or $(2)$ decressd $2$ percentage points?

D$.$ Explain the inplications if your answers in part c in terms of interest rate risk, premium bonds, and discount bonds.

E$.$ Should you buy the bonds?