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Business, 01.07.2019 21:40 jasmine8142002

Bond value and timelong dashchanging required returns personal finance problem lynn parsons is considering investing in either of two outstanding bonds. the bonds both have $1 comma 000 par values and 13% coupon interest rates and pay annual interest. bond a has exactly 5 years to maturity, and bond b has 15 years to maturity. a. calculate the present value of bond a if the required rate of return is: (1) 10%, (2) 13%, and (3) 16%. b. calculate the present value of bond b if the required rate of return is: (1) 10%, (2) 13%, and (3) 16%. c. from your findings in parts a and b, discuss the relationship between time to maturity and changing required returns. d. if lynn wanted to minimize interest rate risk, which bond should she purchase? why?

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