Here are data on $1000 par value bonds issued by Microsoft Ford and Xerox at t

Here are data on $1000 par value bonds issued by Microsoft Ford and Xerox at the end of 2008. Assume you are thinking of buying these bonds as of January
2009. Abswer the following questions:

a) Calculate the values of the bonds if your required rates of return are as follows: Microsoft 6% Ford 15% Xerox 10% where:

Microsoft Ford Xerox
Coupon Interes Rate 5.25% 7.125% 8.0%
Years to Maturity 30 25 16

b) At the end of 2008 the bonds were selling for the following amounts:

Microsoft: $1009.00
Ford: $610.00
Xerox:$805.00

What were the expected rates of return (YTM) for each bond?

c) Should you buy the bonds? Explain.