Bond value and timelong dashChanging required returns??Personal Finance Problem ??Lynn Parsons is considering investing in either of...

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Bond value and timelong dashChanging required returns??PersonalFinance Problem ??Lynn Parsons is considering investing in eitherof two outstanding bonds. The bonds both have ?$1 comma 000 parvalues and 8?% coupon interest rates and pay annual interest. BondA has exactly 9 years to? maturity, and bond B has 19 years tomaturity.?? a.??Calculate the present value of bond A if therequired rate of return? is: (1) 5?%, ?(2) 8?%, and? (3) 11?%.b.??Calculate the present value of bond B if the required rate ofreturn? is: (1) 5?%, ?(2) 8?%, and? (3) 11?%. c. From your findingsin parts a and b?, discuss the relationship between time tomaturity and changing required returns. d.??If Lynn wanted tominimize interest rate? risk, which bond should she? purchase? ?Why?

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Bond value and timelong dashChanging required returns??PersonalFinance Problem ??Lynn Parsons is considering investing in eitherof two outstanding bonds. The bonds both have ?$1 comma 000 parvalues and 8?% coupon interest rates and pay annual interest. BondA has exactly 9 years to? maturity, and bond B has 19 years tomaturity.?? a.??Calculate the present value of bond A if therequired rate of return? is: (1) 5?%, ?(2) 8?%, and? (3) 11?%.b.??Calculate the present value of bond B if the required rate ofreturn? is: (1) 5?%, ?(2) 8?%, and? (3) 11?%. c. From your findingsin parts a and b?, discuss the relationship between time tomaturity and changing required returns. d.??If Lynn wanted tominimize interest rate? risk, which bond should she? purchase? ?Why?