Bond value and time—Changing required returns Personal Finance Problem Lynn Parsons is considering investing in either of two outstanding bonds. The bonds both have ​$1,000 par values and 8​% coupon interest rates and pay annual interest. Bond A has exactly 8 years to​ maturity, and bond B has 18 years to maturity. a. Calculate the present value of bond A if the required rate of return​ is: (1) 5​%, ​(2) 8​%, and​ (3) 11​%.
b. Calculate the present value of bond B if the required rate of return​ is: (1) 5​%, ​(2) 8​%, and​ (3) 11​%.
c. From your findings in parts a and b​, discuss the relationship between time to maturity and changing required returns.
d. If Lynn wanted to minimize interest rate​ risk, which bond should she​ purchase? ​ Why?