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Since Chegg only lets you answer the first couple of questions, I reposted this so that the LAST few questions (3, 4, 5) can be

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Since Chegg only lets you answer the first couple of questions, I reposted this so that the LAST few questions (3, 4, 5) can be answered here!

Thank you!

Please answer>>> I'LL THUMBS UP :)

PLEASE demonstrate the detailed calculations (the formula you put in, the variables you key in the financial calculator, and/OR the way you input variables in Excel) Assuming we are at the end of year 2018. Here are data on $1,000 par value bonds issued by Microsoft, GE Capital, and Morgan Stanley. You work at an investment firm and are thinking about updating your bond portfolio. Answer the following questions: 1. Assuming coupons are paid annually, calculate the intrinsic values of the bonds if your required rates of return for Microsoft, GE Capital, and Morgan Stanley are 6%, 8%, and 10%, respectively. The coupon rates for those bonds are as follows: Coupon rate Maturity Microsoft GE capital Morgan Stanley 7.25% 4.25% 4.75% 30 10 5 2. At the end of 2018, you observed the bonds' prices are as follows: a. Microsoft $1,100 b. GE Capital $1,030 c. Morgan Stanley $1,015 If you purchase those bonds at their corresponding prices, what will be the expected rates of return? 3. Identify which bonds are premium bonds and which bonds are discount bonds. 4. What would be the values of the bond if your required rate of return (1) increased 2% or (2) decreased 2%? 5. Should you buy the bonds? Explain. PLEASE demonstrate the detailed calculations (the formula you put in, the variables you key in the financial calculator, and/OR the way you input variables in Excel) Assuming we are at the end of year 2018. Here are data on $1,000 par value bonds issued by Microsoft, GE Capital, and Morgan Stanley. You work at an investment firm and are thinking about updating your bond portfolio. Answer the following questions: 1. Assuming coupons are paid annually, calculate the intrinsic values of the bonds if your required rates of return for Microsoft, GE Capital, and Morgan Stanley are 6%, 8%, and 10%, respectively. The coupon rates for those bonds are as follows: Coupon rate Maturity Microsoft GE capital Morgan Stanley 7.25% 4.25% 4.75% 30 10 5 2. At the end of 2018, you observed the bonds' prices are as follows: a. Microsoft $1,100 b. GE Capital $1,030 c. Morgan Stanley $1,015 If you purchase those bonds at their corresponding prices, what will be the expected rates of return? 3. Identify which bonds are premium bonds and which bonds are discount bonds. 4. What would be the values of the bond if your required rate of return (1) increased 2% or (2) decreased 2%? 5. Should you buy the bonds? Explain

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