Here are data on $1,000 par value bonds issued by Microsoft, GE Capital. about buying these bonds. Answer the following questions: a. Assuming interest is paid annually, calculate the values of the bonds if your required rates of return are as follows: Microsoft, 3 percent; GE Capital, 9.5 percent; and Morgan Stanley, 10 percent; where: b. The bonds are selling for the following amounts: Microsoft GE Capital Morgan Stanley $929 $1,289 $639 What are the expected rates of return for each bond? c. How would the value of the bonds change if (1) your required rate of return (r) increased 2 percentage points or (2) decreased 2 percentage points? a. If your required rate of return on the Microsoft bond is 3 percent, what is the value of the bond? (Round to the nearest cent.)

Here are data on $1,000 par value bonds issued by Microsoft, GE Capital, and Morgan Stanley. Assume you are about buying these bonds. Answer the following questions: a. Assuming interest is paid annually, calculate the values of the bonds if your required rates of return are as follo Microsoft, 3 percent; GE Capital, 9.5 percent; and Morgan Stanley, 10 percent; where: b. The bonds are selling for the following amounts: What are the expected rates of return for each bond? c. How would the value of the bonds change if (1) your required rate of return (rb) increased 2 pirccentage points or decreased 2 narcantace naints? a. If your required rate of retum on the Microsoft bond is 3 percent, what is the value of the bond? (Round to the nearest cent.) Data table (Click on the following icon D in order to copy its contents into a spreadsheet)