Bond value and timeChanging 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 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 Aif 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? a. (1) The value of bond A, if the required return is 10%, is $. (Round to the nearest cent.) (2) The value of bond A, if the required return is 13%, is $. (Round to the nearest cent.) (3) The value of bond A, if the required return is 16% is $. (Round to the nearest cent.) b. (1) The value of bond B, if the required return is 10%, is $1. (Round to the nearest cent.) (2) The value of bond B, if the required return is 13%, is $. (Round to the nearest cent.) (3) The value of bond B, if the required return is 16%, is $. (Round to the nearest cent.) c. From your findings in parts a and b, discuss the relationship between time to maturity and changing required returns. The greater the length of time to maturity, the V responsive the market value of the bond is to changing required returns, and vice versa. (Select from the drop-down menus.) d. If Lynn wanted to minimize interest rate risk, which bond should she purchase? Why? (Select the best answer below.)