Burns Corp. has zero coupon bonds outstanding, All Mart has 4.2 percent annual coupon bonds outstanding, and Buy More has 8.4 percent annual coupon...

Burns Corp. has zero coupon bonds outstanding, All Mart has 4.2 percent annual coupon bonds outstanding, and Buy More has 8.4 percent annual coupon bonds outstanding. Today, all three of these bonds have $1000 par values, 15 years to maturity and a 4.2 percent yield to maturity. Calculate today’s price for each of these bonds and imagine you buy each of these bonds at these prices with the plan to sell each bond in a year. Now, it’s a year later and each bond has 14 years to maturity. Calculate the price of each bond and your total rate of return on each bond assuming that you sell each bond at the prices given by the following yields to maturity: 3.2%, 4.2%, & 5.2%. Which bond has the most interest rate risk based on this analysis?