Here are data on $\backslash$$$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:

a$.$ Assuming interest is paid annually, calculate the values of the bonds if your required rates of return are as follows: Microsoft, $5$ percent; GE Capital, $9\mathrm{.}5$ percent; and Morgan Stanley, $12\mathrm{.}5$ percent; where: $.$

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

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 $\backslash (\backslash$left$($r$\_\{$b$\}\backslash$right$)\backslash )$ increased $2$ percentage points or $(2)$ decreased $2$ percentage points?

d$.$ Explain the implications of your answers in part $\backslash (\backslash$mathbf$\{$c$\}\backslash )$ in terms of interest rate risk, premium bonds, and discount bonds.

e$.$ Should you buy the bonds? Explain. Data table

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