Question: please answer ASAP Thank you so much ! Here are data on $1,000 par value bonds sued by Microsot, GE Capital, and Morgan Stanley. Assume
Here are data on $1,000 par value bonds sued by Microsot, GE Capital, and Morgan Stanley. Assume you are thinking about buying these bones. Answer the following questions 2. Assuming interest is paid annul, calculate the values of the bonds if your required rates of retum momsfotowe Microsof, 6.5 percent GE Cao 18 percent, and Morgan Stanley 10.5 percent where . The bonds are soling for the following amounts: Microson $711 GE Capital Morgan Stanley $943 What are the expected rates of rotum for each bond? c. How would the value of the bonds change (1) your required rate of retums) increased 2 percentage points of () decreased 2 percentage points? d Explain the implications of your answers in part (c) in terms of interest rate risk, premium bonds, and discount bonds e. Should you buy the bonds? Explain $286 Review MICROSOFT GE CAPITAL MORGAN STA Coupon interest rate 4.75% 6.75% 9.00 Years to maturity 31 25 18 (Click on the con located on the top right comer of the datatable above in order to content into a spreadsheet) Done
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