Bond value and time Changing required returns Personal Finance Problem Lynn Parsons is considering investing in either of two outstanding bonds. The bonds both have $1,000 par values and 12% coupon interest rates and pay annual interest. Bond A has exactly 7 years to maturity, and bond B has 17 years to a. Calculate the present value of bond A if the required rate of return is: (1) 9%, (2) 12%, and (3) 15% b. Calculate the present value of bond B if the required rate of retumis: (1) 9%, (2) 1206, and (3) 15% 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