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: a. Assuming interest is paid annually, calculate the values of the bonds if your required rates of return are as follows: Microsoft, 5.5 percent GE Capital, 9.5 percent: and Morgan Stanley, 13 percent, where: b. The bonds are selling for the following amounts: Microsoft $1,120 GE Capital $784 Morgan Stanley $876 that meet death a. If your required rate of return on the Microsoft bond is 55 percent, what is the value of the bond? (Round to the nearest cent.) at rai arce Enter your answer in the answer box and then click Check Answer on T 13 parts Clear All Check Answer remaining esour 100 e here to search ORI 3 5 6 8 Morgan Stanley S876 What are the expected rates of return for each bond? C. How would the value of the bonds change it (1) your required rate of return (s) increased 2 percentage points or (2) decreased 2 percentage points? d. Explain the implications of your answers in part c in terms of interest rate risk, premium bonds, and discount bonds. e. Should you buy the bonds? Explain. a. If your required rate of return on the Microsoft bond is 5.5 percent, what is the value of the bond? (Round to the nearest cent.) at abral burce ation Enter your answer in the answer box and then click Check Answer 13 parts remaining Clear All Check Answer Resout Type here to search 3 4 5 LO o E R T ally, calculate the values of the bonds if your required rates of return are as follows: Microsoft, 5.5 percer where: Foll - X 12 Data Table jm on (Click on the following icon in order to copy its contents into a spreadsheet.) MICROSOFT GE CAPITAL MORGAN STANLE Coupon interest rate 6.75% 5.75% 6.25% Years to maturity 27 13 4 cent.) Print Done answer Clear All Check A O e prise $ 56 3 5 6 7 00* a E R T Y U F G . C K 2 c 1 0