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Way que 5759 a. Assuming interest in paid annually, calculate tha values of the bonds if your required rates of return are as follows: Microsoft,

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Way que 5759 a. Assuming interest in paid annually, calculate tha values of the bonds if your required rates of return are as follows: Microsoft, 6.5 poroent; GE Capital, 7.5 percent and Morgan Stanley, 12 percent; where b. The bonds are selling for the following amounts: Microsoft $1,091 GE Capital Morgan Stanley 5687 What are the expected rates of return for euch bond? c. How would the value of the bonds change # (1) your required rate of retum (r) increased 2 perontage 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 a. If your required rate of return on the Microsoft bond is 5.5 percent, what is the value of the bond? $(Round to the nearest cont) Enter your answer in the answer box and then click Check Answer 13 parts remaining Clear All Check Answer apter 7 (similar to) annually, calculate the values of the bonds if your required rates of return are as follows: Microsoft, 5.5 percen ent, where: he following amounts: $1,091 $759 of rel e bon Data Table rcen your B? Ex urn on (Click on the following icon in order to copy its contents into a spreadsheet.) MICROSOFT GE CAPITAL MORGAN STANLE Coupon interest rate 6.50% 5.50% 6.00% Years to maturity 28 15 6 cent. Print Done inswer box and then click Check Answer. Clear A Ch AX G W P MacBook

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