Here are data on $1,000 par value bonds issued by Microsoft, GE Capital, and Morgan Stanley. Assume you are thinking about buying these bonds. Answer the following questions: a. Assuming interest is paid annually, calculate the values of the bonds if your required rates of return are as follows: Microsoft, 6 percent; GE Capital, 8 percent; and Morgan Stanley, 11.5 percent; where: b. The bonds are selling for the following amounts: Microsoft $880 GE Capital $615 Morgan Stanley $699 What are the expected rates of return for each bond? c. How would the value of the bonds change if (1) your required rate of return (b) increased 2 percentage points or (2) decreased 2 percentage points? d. Explain the implications of your answers in part c in terms of interest rate risk, premium bonds, and discount bonds. e. Should you buy the bonds? Explain. - ? Data table (Click on the following icon 2 in order to copy its contents into a spreadsheet.) MICROSOFT GE CAPITAL MORGAN STANLE Coupon interest rate 5.50% 4.50% 5.00% Years to maturity 15 23 5 Print Done