. Bond value and time: Changing required returns. Lynn Parsons is considering investing in either two outstanding bonds. The bonds both have $1000 par values and 11% 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 return is (1) 8%, (2) 11%, and (3) 14%.

b) Calculate the present value of bond B if the required return is (1) 8%, (2) 11%, and (3) 14%.

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?

Could someone please show me the steps (formulas) of acquiring the answers and how to put them in my calculator. Much appreciated.