Here are data on $1,000 par value bonds issued by Microsoft, GE Capital, and Morgan Stanloy. Astume you are evinking about buying thete bonds. Answec the following questions: a. Assumveg interest is paid annualy, calculate the values of the bonds if your required rates of retum are as folowe: Microsolt. 3 percent, GE Capita, 7.5 percent, and Morpan Stanley, 13 percent: where: b. The bonds are selling for the following arsounts What are the expected rates of retum for each bond? c. How would the value of the bonds change if (1) your required rate of return (fb) increased 2 percentuge points of (2) decreased 2 percentsge points? 4. Explain the impleations of your answers in part e in terms of interest rate risk, premium bonds, and discount bonds. a. Should wou huv the honila? Frniain 2. If your required tale of retam on the Mictoson bond is a percent, what is the value of the bond? (Round to the nearest cent.)