Here are data on $1,000 par value bonds issued by Microsoft, GE Capital, and Morgan Stanley. Assume you are thinking 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, 5 percent; GE Capital, 17 percent; and Morgan Stanley, 10.5 percent; where: b. The bonds are selling for the following amounts: Microsoft GE Capital Morgan Stanley $716 $948 $510 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? d. Explain the implications of your answers in part (e) in terms of interest rate risk, premium bonds, and discount bonds. e. Should you buy the bonds? Explain I a. If your required rate of return on the Microsoft bond is 5 percent, what is the value of the bond? (Round to the nearest cent.) Review GE CAPITAL 7.50% 26 35 15 (Click on the icon located on the top-right corner of the data table above in order to c contents into a spreadsheet) Coupon interest rate Years to maturity MICROSOFT 5.25% MORGAN STAN 8.00% X