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2. There are two bonds and you have $5,000 of seed money for your investment. STHM bond will mature in 20 years at repayment of
2. There are two bonds and you have $5,000 of seed money for your investment. STHM bond will mature in 20 years at repayment of $16,000. TEMPLE bond will mature in 17 years later at repayment of $14,000. Until then there is no interest for both bonds. a) Calculate the yearly rate of return for both bonds. b) Which of bonds is more attractive? 2. There are two bonds and you have $5,000 of seed money for your investment. STHM bond will mature in 20 years at repayment of $16,000. TEMPLE bond will mature in 17 years later at repayment of $14,000. Until then there is no interest for both bonds. a) Calculate the yearly rate of return for both bonds. b) Which of bonds is more attractive
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