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a) Your financial advisor has given you the following advice. A great Investment for your $10,000,000 should be in long term bonds offering an interest
a) Your financial advisor has given you the following advice. A great Investment for your $10,000,000 should be in long term bonds offering an interest return of 20/25% per annum whereas short term bonds are only offering a low interest rate. Is the financial advice good? Give your recommendation and reasoning in no more than 350 words. b) Calculate the yield to maturity of a coupon bond face value $10,000, purchased for $8000.00 with an interest rate of 8%per annum that has 25 years to maturity and sold at 15 years
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