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A stockbroker has proposed two investments in low-rated corporate bonds paying high interest rates and selling at steep discounts (junk bonds). The bonds are equally
A stockbroker has proposed two investments in low-rated corporate bonds paying high interest rates and selling at steep discounts (junk bonds). The bonds are equally risky and both mature 10 years from today. Interest is paid annually. a) Construct a choice table for interest rates from 0% to 100%, in increments of 10%. b) Which, if any, of the bonds should you buy if your MARR is 20%
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