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

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.

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

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