1. Bilal Goldsmith broker has shown him two bonds . Each has a maturity of 5 years , a par value of BD 1,000and a yield to maturity of 14 % . Bond A has a coupon. interest rate of 8 % paid annually Bond B has a coupon rate of 12 % paid annually.

c. Which of these two bonds could be a better choice?

d. Bilal Golsmith has BD 20,000 to invest. Judging on the basis of the price of the bonds. How many of either one could bilal purchase if he went were choose it over the other?