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Lynn Parsons is considering investing in either of two outstanding bonds. The bonds both have $1,000 par values and 13​% coupon interest rates and pay annual interest. Bond A has exactly 6 years to​ maturity, and bond B has 16 years to maturity.     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? I need all parts and the sub parts answered

Lynn Parsons is considering investing in either of two outstanding bonds. The bonds both have $1,000 par values and 13​% coupon interest rates and pay annual interest. Bond A has exactly 6 years to​ maturity, and bond B has 16 years to maturity.     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? I need all parts and the sub parts answered

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 4P
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Lynn Parsons is considering investing in either of two outstanding bonds. The bonds both have $1,000 par values and 13​% coupon interest rates and pay annual interest. Bond A has exactly 6 years to​ maturity, and bond B has 16 years to maturity.  
 
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?
I need all parts and the sub parts answered 
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