Lynn Parsons is considering investing in either of two outstanding bonds. The bond both have $1000 par values and 11% coupon interest rate and pay annual interest. Bond A has exactly 7 years to maturity, and bond B has 17 years to maturity.

1. Calculate the present value of bond A if the required rate of return is (1)8%, (2) 11%, and (3) 14%.
2. Calculate the present value of bond B if the required rate of return is: (1)8%, (2)11%, and (3)14%.
3. From your findings in pars a and b, discuss the relationship between time to maturity and changing required returns.
4. If Lynn wanted to minimize interest rate risk, which bond should she purchase? Why?