Moonlight, Inc. has issued two types of bondi A1 and A2 Bom of them is paying annual interstof $90. Maturty of A1 i 12 years. Maturity of A2 is 1 year a. Find the value A1 and A2 when the market interest rate is (t) 5 percent. (2) 8 percent, and (3) 13 percent Assume that there is only one more interest payment to be made on the A2 bonds. b. Why does the (12-year) bond fluctuate more when interest rates change than does the (1-year) bond? a. When market rate is 5 percent the value of A1 bonds would be 5 Round to the nearest cont.) When market rate is 8 percent the value of At bonds would be sound to the nearest cont When the market rate is 13 percent the value of A1 bonds would be $Round to the nearest cent) When the market rate is 5 percent. the value of Series A bonds would be s Round to the neare cant) When the market rate is percent the value of Senes AZ bonds would be found to the nearest cent When the manatate s 13 percent me vatue of Serie A2 bonds would be s Round to the nearest can b. Why does me (12-year bond fluctuate more when interest rate change than does the 1 year) bond? (Select the best choice below) DA Because longer term bondholders are locked into a particular interest rate for a longer period of time but are exposed to same interest rate as thotter bondholdere OB Because longer som bondholders are locked into a particular interest rate for a longer benod of time and therefore exposed to more interest rated Because longerdem bondholders are locat interest rate for a longe perod of time Goodtastes corp has a 15-year $1.000 par value bonds with 11 annual interest. The market price of the bonds is 5950, and the required rate of return is 13% a. Find the bond's expected rate of retum b. What is the value of the bond to you, given your required rate of return c. Should you purchase the bond? a. What is the expected rate of return of the bond? I (Round to two decimal places b. What is the value of the bond to you given your 13 percent recured rate of return? 5. Round to the nearest cent) c. Should you purchase the band select me best choice below) O A Yes. Since the expected rate of return is more than your required rate of return the bond is an acceptable investment OB No Since the expected rate of return it less than your required rate of rebam the bond is not an acceptable investment OC Yeu Since the expected rate of retumis less than your required tate of return the band is an acceptable investment OD No Since the expected rate of return is more than your returned rate of return the bond is not acceptable investment