Question 3 (8.5 marks) Given are three bonds issued by Emaar, Etisalat and Du, each with a par value of AED 1,000 Emaar 8.1% Etisalat 3.9% 6.7% Coupon Years to maturity Question A (3 marks) Assume the interest is paid annually. Your required rates of return are as follows: Emaar-6%, Etisalat-7%, Du-9%. Calculate the value of the bonds. Question B (1.5 marks) Assume that the bonds are selling for the following amounts: Emaar Etisalat AED 1.220 AED 1,400 AED 980 LU Calculate the expected return of each bond Question C (1.5 marks) Calculate the value of each bond, if your required rate of return would decrease by 2 percentage points Question D (2.5 marks) Explain if you should buy the bonds and why