A stockbroker has proposed two investments in low rated corporate bonds paying high interest rates and selling

Question:

A stockbroker has proposed two investments in low rated corporate bonds paying high interest rates and selling below their stated value (in other words, junk bonds), Both bonds are rated as equally risky. Which, if any, of the bonds should you buy if your is 25%?

*At maturity the bondholder receives the last interest payment plus the bond stated value.

MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...