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Bend valuation and yieid to maturity Personal Finance Probiem Mark Geidsmin's broker has shown hum ow bonds issoes by different conpenies. Each has a maturity

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Bend valuation and yieid to maturity Personal Finance Probiem Mark Geidsmin's broker has shown hum ow bonds issoes by different conpenies. Each has a maturity of 4 years, a par vaiue of 51 , 000, and a ywidd to maturty of 7.20 ". The fint bond is issued by Crabbe Wasie Disposal and has a coupen interest robe of 6.302% paid annually. The second bond issued by Malfoy Enterprises, has a coupen isterest ate of 8.00% paid annealy a. Cakilete the seling price for each of the bonds. b. Mark has $21,000 to inwest. If he wants to nvest only in bonds issued by Crabbe Waslo Disposal, how many of those bonds could he buy? What if he wants to invesi oniy in bonds is isued by Malioy Enterpises? c. What is the todal interest income that Mark could earn qach yoer if he itwested onty in Crabbe bonds? How much interest would he eam each year if he invested only in Malfoy bonds? d. Assume that Merk wil reimest all the interest be receves as it is paid and that his rate of retum on the remested intsrest wil be 11% Calculete the total dolars that Mark wit acoumulate over 4 years it he hvests in Crabbe boeds or Malfoy bonds. Your total calculation will indlude the interest Mark gets, the princpat he recetwes ahen the bonds mature and all the addtionsl interest he eags from reinvesting the coupon peyments he receives 6. The bonds issued by Crabbe and Marfoy might appear to be equaly good investrents decause hey ofler the same yeid to maturity of 720 . Nobce, however, that your anssecs 10 part a are not the same for wach bond, suggesting that one bond is a better ineestinent tien the othec Why is that the case? The seling pree for the Crabbe waske bisposu bond is: (Round to the nearest cent)

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