Homework: HW_CH7 Save Score: 0 of 9 pts 10 of 102 complete) HW Score: 8.33%, 3 of 36 pts Mini Case. Chapter 7 (similar to) Here are data on $1,000 per 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 retum are as follows: Microsoft, 4.5 percent; GE Capital, 8 percent; and Morgan Stanley, 10.5 percent; where: b. The bonds are selling for the following amounts: Microsoft $1,225 GE Capital $805 Morgan Stanley $763 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 (7) increased 2 percentage points or (2) decreased 2 percentage points? d. Explain the implications of your answers in parte in terms of interest rate risk, premium bonds, and discount bonds. a. If your required rate of return on the Microsoft bond is 4.5 percent, what is the value of the bond? (Round to the nearest cont.) Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Coupon interest rate Years to maturity MICROSOFT 5.50% 22 GE CAPITAL 4.50% 12 MORGAN STANLE 5.00% Print Done Enter your answer in the answer box ar 13 parts remaining Clear All Check