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Crabbe Waste Disposal and has a coupon interest rate of 6 . 3 2 2 % paid annually. The second bond, issued by Malfoy Enterprises,
Crabbe Waste Disposal and has a coupon interest rate of paid annually. The second bond, issued by Malfoy Enterprises, has a coupon interest rate of paid annually.
a Calculate the selling price for each of the bonds.
b Mark has $ to invest. If he wants to invest only in bonds issued by Crabbe Waste Disposal, how many of those bonds could he buy? What if he wants to invest only in bonds issued by Malfoy Enterprises?
c What is the total interest income that Mark could earn each year if he invested only in Crabbe bonds? How much interest would he earn each year if he invested only in Malfoy bonds? will include the interest Mark gets, the principal he receives when the bonds mature, and all the additional interest he earns from reinvesting the coupon payments he receives. investment than the other. Why is that the case?
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