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please answer all Bond value and time-Changing required returns Personal Finance Problem Lynn Parsons is considering investing in either of two outstanding bonds. The bonds

please answer all

image text in transcribed Bond value and time-Changing required returns Personal Finance Problem Lynn Parsons is considering investing in either of two outstanding bonds. The bonds both have $1,000 par values and 13% coupon interest rates and pay annual interest. Bond A has exactly 5 years to maturity, and bond B has 15 years to maturity. a. Calculate the present value of bond A if the required rate of return is: (1) 10%, (2) 13%, and (3) 16%. b. Calculate the present value of bond B if the required rate of return is: (1) 10%, (2) 13%, and (3) 16%. c. From your findings in parts a and b, discuss the relationship between time to maturity and changing required returns. d. If Lynn wanted to minimize interest rate risk, which bond should she purchase? Why? a. (1) The value of bond A, if the required return is 10%, is $ (Round to the nearest cent.)

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