Here are data on $1000 par value bonds issued by? Microsoft, GE? Capital, and Morgan Stanley. Assume you are thinking about buying these bonds.
A. If your required rate of return on the Microsoft bond is 6 percent, what is the value of the? bond?
Microsoft: coupon interest rate= 5.25% years to maturity= 29
GE Capital: coupon interest rate= 7.00% years to maturity= 23
Morgan Stanly: coupon interest rate= 8.00% years to maturity= 11