All of them pay interest semi-annually and has the following information:

Bond Par Coupon Years to Required

Value Rate Maturity Return

A $1,000 10% 12 8%

B $1,000 14% 10 10%

Required:

1. Determine the value of each bond given the above information ( 4 Marks)

2. Which bond is better for CSL? What are some of the considerations CSL may need?

to make based on these calculations with respect to raising capital. (2 Marks)