Question: Task A .Bond Valuation: The information below relates to $1000 par value bonds issued by Microsoft, GE Capital and Morgan Stanley at the end of
Task A .Bond Valuation:
The information below relates to $1000 par value bonds issued by Microsoft, GE Capital and Morgan Stanley at the end of 2012. Assume that you are thinking of buying these bonds as of January 2013. Answer the following questions:
Assuming that interest is paid annually, calculate the values of the bonds if your required rates of return are as follows: Microsoft 6 %; GE Capital 8% and Morgan Stanley 10% where:
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