I tried solving this problem and I dont understand how to put this together. Please

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 the interest is paid annually, calculate the values of the bonds if the required rates of return are as follows: Microsoft, 6 percent; GE Capital, 9.5 percent; and Morgan Stanley, 10 percent; where:

MICROSOFT GE CAPITAL MORGAN STANLEY

Coupon interest rate 4.25% 3.25% 3.75%

Years to maturity 26 12 8

a. If the required rate of return on the Microsoft bond is 6 percent, what is the value of the bond?

b. The bonds are selling for the following amounts:

Microsoft $846

GE Capital $475

Morgan Stanley $594

What are the expected rates of return for each bond?

c. How would the value of the bonds change if (1) the required rate of return

(rb) increased 2 percentage points or (2) decreased 2 percentage points?

d. Explain the implications of the answers in part c in terms of interest rate risk, premium bonds, and discount bonds

e. Should one buy the bonds? Explain.