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 MARR is 25%?

Bond Value Payment $1000 Buying Commission $480 Maturity 15 years $ 94 Gen Dev 630 140 RJR 1000 15

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

Bonds
When companies need to raise money, issuing bonds is one way to do it. A bond functions as a loan between an investor and a corporation. The investor agrees to give the corporation a specific amount of money for a specific period of time in exchange... 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...