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Lynn Parsons is considering investing in either of two outstanding bonds. The bonds both have $1,000 par values and 9% coupon interest rates and pay

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Lynn Parsons is considering investing in either of two outstanding bonds. The bonds both have $1,000 par values and 9% coupon interest rates and pay annual interest Bond A has exactly 6 years to maturity and bond B has 16 years to maturity a. Calculate the present value of bond Ait the required rate of return is: (1) 6% (2)9%, and (3) 12% b. Calculate the present value of bond if the required rate of retum is (1)6% (2)9%, and (3) 12% c. From your findings in parts a and discuss the relationship between time to maturity and changing required returns d. It Lynn wanted to minimize interest rate risk, which bond should she purchase? Why? a. (1) The value of bond All the required return is 6%, is $(Round to the nearest cont)

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